Brazil exports of soybean to China in May smash record

08.06.2018

Brazil exports of soybean to China in May hit 9.76 million mt, almost 80% of the total volume exported and a monthly record, according to customs data published by Brazil late Wednesday.

The figure is equivalent to around 160 cargoes of soybeans and eclipses the previous record by more than 1.4 million mt, set in April 2017 last year.

Brazil total exports for May, released Monday, reached 12.35 million mt.

The hike in exports to China comes as Brazil is labouring with a record crop that analysts estimate will be between 117 million mt and 119 million mt, up between 3 and 5 million mt on the 2017 harvest, which was in itself a record haul.

It is also set against the backdrop of a trade spat between the United States – the world’s second biggest exporter of soybeans after Brazil – and China – the world’s biggest buyer.

A threat by China’s administration to tax US bean imports in a tit-for-tat trade dispute has seen Chinese crushers snap up as much supply from Brazil as possible in an attempt to build up stocks before the Brazilian selling season ends and the US starts in September.

Soybean stocks in China hit a record high of 8.18 million mt this week, according to data from China’s National Grain and Oil Information Centre, which is equivalent to a month's worth of demand.


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