China bought 3 million mt of Brazilian soybeans in December, down 27% on year


Source: Platts

via Hellenic Shipping News - 09/01/2020      


China purchased 3 million mt of soybeans from Brazil in December, down 27% year on year, according to the Brazilian trade department.


In total, Brazil shipped out 3.44 million mt of soybeans in December, down almost 16% year on year, while the country’s calendar year soybean exports in 2019 were 11% lower on the year at 74 million mt, the trade department said.


The low December Chinese purchases of Brazil beans were driven by the country’s demand shift to the US as the Xi administration issued tariff waivers to firms importing US-origin beans, sources said.


Dismal December Brazilian soy sales could also be a cyclical issue. The last quarter in a calendar year is generally considered lean period for Brazilian soy exports because of depleting old crop inventory, while the new crop is still being planted.


The Chinese government has issued several rounds of tariff waivers on US soybean imports since August in anticipation of a partial trade deal, which the two countries could sign on January 15. Two of the world’s biggest economies have been in trade dispute since early 2018. As a result, the two nations have imposed retaliatory import tariffs on each-other’s goods worth billions of dollars.