According to Reuters, citing official customs data, China imported around 10.27 million metric tons of soybeans in June, which is a 24.5% increase compared to the same month last year. Experts attribute the increase in shipments to China to the growth in purchases of cheaper raw materials from Brazil.

“Imports in June were lower than the record 12.02 million metric tons in May when there was a sharp increase in the number of detained soybean cargoes at customs. However, shipment volumes remain relatively high and in line with market expectations,” the report stated.

Darin Friedrichs, co-founder of Shanghai-based Sitonia Consulting, commented that an additional 10-11 million metric tons of oilseeds are expected to be imported this month. However, demand may decrease in the second half of the year if China’s pig population starts to decline.

“In that case, less soybean meal will be needed, which means less soybeans for processing,” he added.

Overall, in the first half of the year, China increased its soybean purchases by 13.6% compared to January-June 2022, reaching a total of 52.58 million metric tons.