BEIJING: China brought in a record 12.14 million metric tons of soybeans in August, as traders took advantage of lower prices to stock up amid concerns that trade tension with the United States could intensify if Donald Trump returned as president.

Last month’s imports were a jump of 29% from 9.43 million tons a year ago, according to Reuters’ calculations based on customs data released on Tuesday.

“The increase was because the ships that were delayed from customs clearance last month finally got cleared this month,” Rosa Wang, analyst at Shanghai-based agro-consultancy JCI said.

“Low Chicago soybean prices have provided a good chance for large purchases in recent months, while also some say buyers are making preparations for any possible high tariffs that Donald Trump might impose if he wins the U.S. elections,” Wang said.

Soybeans, wheat and corn fall on profit taking

Total soy arrivals in the first eight months of the year stood at 70.48 million tons, up 2.8% on the year, the data from the General Administration of Customs showed.

The large arrivals swell an oversupply of soybeans in the world’s top buyer of the commodity as a struggling economy weakens consumption of meat and dairy.

Soybeans are crushed into meal for animal feed and oil for cooking.

Domestic soybean and soybean meal inventories have declined slightly but inventories remain high, agriculture consultancy MySteel said.

“It will take time to ease the contradiction between soybean meal supply and demand, and the bottom cycle of soybean meal prices will be prolonged,” it said in a note.

Rising costs of imported soybean have lifted September crush margins in China’s key processing hub of Rizhao to their highest since July, although crushers are still losing about 300 yuan ($42.17) for each ton processed.

In Brazil, soybean farmers could produce 14% more in the 2024/2025 season than the previous one, a Reuters poll of 10 analysts and market institutions showed, as expectations grow for more rain in the year’s last quarter.