China's appetite for soybean never disappoints bulkers as the nation imported 100.326 million tonnes last year, a 13.3 percent growth YoY over 2019. In the first 5 months 2021, the economy did 38.23 million tonnes, 13% more than same period of 2020 and 20% on top of 2019.
A record high 9.235 million tonnes of Brazilian soybean arrived at Chinese ports in May amidst booming dry bulk shipping market. The previous record month was June 2020, which saw 10.512 million tonnes discharged. The delayed crop due to rain in Brazil indicates a slower start in Q1 and a much stronger export season in Q2. As per ANEC, Brazil loaded 15.674 and 14.221 million tonnes of soybean in April and May (SECEX's aggressive estimates were 17.380 and 16.4 million tonnes for April and May), of which 74 percent are destined for China. China needs to prepare more silos for the incoming beans.
United States benefits from Phase I of Sino-US Trade Agreement and exported 21.531 million tonnes to China, while the previous hike happened in 2017 which was 18.674 million tonnes in 5 months time, the saddest year was in 2019 US only sold 5.215 million tonnes soybean to China in 5 months time due to trade tensions. The two major exporters moved 37.19 million tonnes soybean to Chinese ports in Jan-May, taking up 97.3% China's share.
Source: Simon Young
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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