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By, 3 Min Read* Soybean imports in the first half were boosted by demand from a recovering pig herd* Demand may wane in the second half as crush margins fall* Since the beginning of the year, pig prices have dropped by half (Adds chart, grain imports details) (Reuters) – BEIJING, July 13 – China’s soybean imports increased 11.6 percent in June compared to May, according to customs statistics released Tuesday, continuing a trend of rebounding demand in the world’s biggest buyer as it tries to fulfill meal demand for its expanding hog herds. According to figures from the General Administration of Customs, China imported 10.72 million tonnes of soybeans in June, up from 9.61 million tonnes in May and the third-highest monthly total on record. The imports, albeit down 3.9 percent from a record 11.16 million tonnes a year ago, highlight a jump in China’s soybean need for soymeal this year to feed restored hog herds following the abolition of African swine disease. China’s soybean imports increased 8.7% to 48.96 million tonnes in the first half of 2021, compared to the same time the previous year. Imports increased in the first half as “pig inventories recovered and demand for soymeal increased,” according to Rosa Wang of Shanghai JC Intelligence Co Ltd, an agriculture consultancy. She also stated that June arrivals were greater because some cargoes scheduled for unloading in May slipped into June. “Crushers also increased purchasing due to concerns about bean supplies in the future,” she said. Early in the year, Chinese crushers ordered huge volumes from top supplier Brazil in order to benefit from greater profits. Early in the year, rains in Brazil hindered the oilseed harvest and exports, but shipments have picked up in recent months, and delayed cargoes have begun to arrive. According to two market analysts who wanted to remain anonymous, Chinese soybean imports may fall in the second half of the year as crush margins have turned negative. Crushers in Shandong province, which is a key soybean import and processing hub in northern China, are currently losing 198 yuan ($30.63) each tonne of grain crushed. JCI-SBMG-SHDNI Hog prices in China Farmers rushed pigs to slaughterhouses following another round of African swine disease outbreaks, and JCI-HOG-JIUJN has more than halved since the beginning of the year. Price pressure was also exacerbated by increased supply. Analysts predict that soybean shipments in July will decline due to lower Brazilian shipments now that the bulk of the country’s harvest has been harvested. Soybeans harvested in September and October in the United States often dominate the market in the fourth quarter of the year. Soybeans are imported to China and crushed into soymeal, which is used to feed cattle and make cooking oil. In the first half of the year, China imported 15.3 million tonnes of grain, jumping 318.5 percent from the previous year. According to customs data, wheat imports increased by 60.1 percent to 5.37 million tonnes in the first half. 6.4639 yuan = $1 Hallie Gu and Shivani Singh contributed reporting, while Tom Hogue and Christian Schmollinger edited the piece./nRead More

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