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April soybean imports less than expected; China cozying up with Brazil

China's April soybean imports totaled 6.08 million metric tons (mmt), according to customs data. While this volume was 2.5 mmt higher than the previous month, Chinese market participants had been expecting 8.5 million metric tons after large purchases from Brazil according to analysis by China's Soybean meal forum. This was the lowest April import volume in the last 10 years.

Customs clearance of soybeans has been slowed by border inspections. It is estimated that 2.4 mmt of soybeans arriving at Chinese ports are still stuck in customs clearance. With tight supplies of soybeans many processing plants are idle. Trucks are reportedly lined up waiting for soybean meal supplies they can deliver to feed mills. 

Earlier this week Chinese authorities announced they had lifted bans on soybean shipments from 5 Brazilian suppliers: ADM, Cargill, TerraRoxa, OlamBrasil, and C. Vale. These exporters had been suspended early this year due to "sanitary issues" involving pesticide residues and pests. According to the article Brazil quickly rectified the situation and the ban was lifted on April 25.

The announcement of the lifting of the ban came in advance of Brazilian President Lula's expected visit to China for the CELAC (Community of Latin American and Caribbean States) Forum to be held in Beijing May 12-13. Brazil's Agriculture Minister and the head of Brazil's agricultural research institute (Embrapa) are expected to accompany President Lula as China and Brazil form stronger ties in agriculture. 

Brazilian officials reportedly are eager for China to make investments in Brazil to address shortcomings in transport and storage capacity that cause serious congestion at ports and roads. Expanded market access and technical barriers to trade are also expected to be discussed at the upcoming Latin American forum in Beijing. 


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