BEIJING – China imported 4.49 million tonnes of soybeans in March, up 5.4 percent from the month before as the world’s top buyer of the oilseed shifts to cheaper South American supplies, official customs data showed.
March imports also picked up after the Chinese New Year holiday which fell in mid-February, reducing arrivals that month.
Imports in the first quarter of the year rose 1.9 percent to 15.63 million tonnes, according to the data published by the General Administration of Customs.
Chinese buyers booked larger volumes of soybeans for delivery in the first quarter as they sought to take advantage of low prices, said Monica Tu, analyst at Shanghai JC Intelligence.
Slightly stronger imports came even as downstream demand weakened in some regions.
“Demand is actually pretty bad, in many places feed demand in the first two months declined,” she said.
Soy imports will climb further in April-June as cheap South American supplies offer processors better crushing margins, said the China National Grain and Oils Information Center (CNGOIC).
Imports in April are estimated at 5.3 million tonnes, while arrivals in May and June will increase to more than 6.5 million tonnes per month, the center said. Shipments stood at 4.26 million tonnes in February.
“The import cost of soybeans has fallen much more than the prices of domestic soyoil and soymeal, which has improved crushing margins this week,” CNGOIC said in a report on Friday.
Crushing margins were as high as 140 yuan ($23) per tonne for Argentina soybeans for May shipment, it said.
Chicago Board of Trade soy prices <0#S:> fell to the lowest since October on Friday due to rising global supplies. Brazil and Argentina, the world’s largest and No.3 exporters, are expecting a record soy harvest this year.
China imported 360,000 tonnes of edible oils in March, up 56.5 percent from the prior month, according to customs data. China imports palm oil, soyoil and rapeseed oil.
