Imports for January and February together were 13.04 million metric tons, according to the General Customs Administration. The drop is due to the low crushing margins and the lower arrival of ships during the summer holidays. Lunar New Year.
The customs of China They also reported import volumes of soy revised for January-February 2023 to 14.30 million tonnes, against an initial published figure of 16.17 million tonnes. Revisions to import figures are common, but such a large downward adjustment is unusual, Reuters noted.
Imports in the first two months of the year were in line with analysts’ expectations, which placed them between 13 and 14 million tons. “Delays in shipments due to low crushing margins, the Chinese New Year holidays and slow customs procedures are the reasons for the relatively low number of imports,” he stated. Rosa Wangconsulting firm analyst JCI.
China combines January and February import data into a single release to soften the impact of the Lunar New Year holiday, which falls in either month each year. “Arrivals in January and February are low, as Chinese feed mills have reduced the use of flour. From April, they will increase due to the cheaper beans,” predicts an international company in Singapore that supplies oilseeds to China.
Chinese demand for soy The feed industry could be affected this year by new rules controlling the country’s pork production capacity, after aggressive farm expansion led to an oversupply of pigs and increased losses.
China lowered the national target for normal breeding sow retention from 41 million to 39 million, in a move that analysts say could reduce the size of the world’s largest pig herd by at least 22 million.
Meanwhile, the soybean harvest in the main producing countries, Brazil and Argentinawas advancing at a good pace, with expectations of abundant supply.
In recent weeks, most analysts have lowered Brazilian estimates, but the country is still full of beans after a record harvest last season and has surpassed US sales by China.
Source: Ambito
