Chinese soybean imports for October 2021 fell more than 41% from the same period a year ago, reaching the lowest level since March 2020. Low crushing margins have dampened demand, Reuters says. and Hurricane Ida limited US shipments
The world’s largest buyer of soybeans bought 5.1 million tonnes of the raw material in October, up from 8.69 million tonnes last year. Chinese imports also fell by 6.8 million tonnes in September. In the first ten months of 2021, China bought 79.08 million tonnes of soybeans. Chinese crushers increased their purchases earlier this year due to possible high demand from a rapidly recovering herd of pigs. But demand recently plummeted after the supply of pigs exceeded demand, causing prices to drop and wiping out farmers’ profits. Prices edged up in October after farmers suffered heavy losses over the summer. Grinding margins were low in early September after hitting a record high in June. Margins began to improve later in September due to lower inventories.
The United States was also hit by shipping problems when Hurricane Ida hit the Gulf Coast in early September 2021, damaging at least three of the nearly twelve export terminals located along the Mississippi River between Baton Red, Louisiana and the Gulf of Mexico.