China's soybean imports fall 7.7% in September from a year earlier

China, the world's largest soybean importer, saw a 7.7% decline in September 2022 compared to the same period the previous year, according to customs data. Imports fell from 12.87 million tons in September 2021 to 11.88 million tons in September 2022. The September figures also marked a 2.1% decrease from August 2022's 12.14 million tons.

From January to September 2022, China's total soybean imports reached 86.08 million tons. The sharp drop in September 2022 was largely due to a high base from the previous year when China increased its purchases of South American soybeans amid trade tensions with the United States. Analyst Rosa Wang noted that Brazil's sales of old-crop soybeans have been brisk, and the volume of new US soybeans available for shipment has not yet increased as the US harvest season has just begun.

China has now met half of its target to buy 25 million tons of US soybeans, a deal reportedly agreed upon in October. However, China is expected to see a decline in soybean purchases in the coming months due to weak animal feed demand and negative crush margins. US cargoes, which were not included in proposed tariff relief following a recent Washington summit, are unlikely to make up for this decline.

By September 2022, China's soybean imports were anticipated to average around 9.5 million tons per month for the rest of the year, according to Cai Hongli, a deputy general manager of market research at COFCO Oils.