China imported 5.38 million tonnes of soyabeans in November, down 38 percent from a year ago and the lowest monthly number in two years, customs data showed on Saturday, after buyers avoided US soyabeans amid a tariff war with the United States. The world's top soyabean buyer usually gets most of its oilseed imports from the United States in the final months of the year when the US harvest comes to market.
But purchases have plunged since Beijing hit the product with a 25 percent tariff on July 6. November imports, which were the lowest since the 5.2 million tonnes imported in October 2016, were also down 22.2 percent from 6.92 million tonnes imported in October. China crushes soyabeans to churn out animal feed ingredient soyameal for its massive livestock herds. It had managed to keep its imports steady with last year by buying up extra supplies from top exporter Brazil and other suppliers.
But after including November, imports for the first 11 months of the year have slipped 4.3 percent on the same period in 2017 to 82.3 million tonnes, according to the data released by the General Administration of Customs. High stocks will more than cover industry needs, traders said before the data was released, particularly with demand declining amid outbreaks of African swine fever in the nation's hog herd.
An agreement reached at the G20 summit late last month by China to start buying US farm goods again is also expected to prompt some fresh soyabean deals. There are also forecasts of record soyabean production in Brazil, which is due to start its harvest this month. Imports of vegetable oils in November were 622,000 tonnes, up 32.3 percent from the previous month.