China’s soybean imports in the first two months of 2020 jumped 14.2% year-on-year, a recent official data showed, as cargoes from the United States booked during a trade truce at the end of 2019 cleared customs.
China, the world’s top market for soybeans, brought in 13.51 million tonnes of the oilseed in January and February, up from 11.83 million tonnes a year earlier, according to data from the General Administration of Customs released recently.
Customs said last month it would combine preliminary trade data for January and February instead of releasing data for individual months. Early-year data in China is typically distorted by the week-long Lunar New Year holiday, while this year the coronavirus epidemic has also widely disrupted business.
China brought in 9.54 million tonnes of the oilseed in December, when cargoes from both Brazil and the United States cleared customs.
Soybean crushers purchased more U.S. beans after Beijing issued extra tariff-free quotas for some American cargoes ahead of an initial trade deal that was finalised in January.
China has already granted tariff exemptions to some crushers to import U.S. soybeans, Reuters reported.
Measures to contain the coronavirus in China, however, hampered operating rates at crushing plants by disrupting the transport of raw materials and processed products.
Crushing rates are expected to start gradually picking up as the virus containment measures ease amid falling rates of infection within China.
U.S. soybeans usually dominate the market in the fourth quarter and the early months of each year, when exports from the U.S. autumn harvest kick in.
A tit-for-tat trade war that began in mid-2018 greatly curtailed U.S. soybean shipments to China over the past 1-1/2 years, although buying emerged periodically.
China has promised to buy more U.S. farm goods under the trade deal that Beijing and Washington signed in mid-January, but it has so far fallen short of making large purchases of agricultural produce, including soybeans.
China’s demand for soybeans has also been curbed over the past several months by an outbreak of African swine fever that has slashed the country’s massive pig herd by almost 50%.