China to Import Less Soy First Time Since 2004
(Bloomberg) -- China has been gobbling up the world's soybeans at breakneck speed over the past decade. But as the trade spat with the U.S. escalates, its imports of the oilseed are set to decline for the first time in 15 years.
China will bring in 95 million metric tons of soybeans in the 2018-2019 season, the U.S. Department of Agriculture said on Thursday in its monthly World Supply and Demand Estimates report. That's down from the USDA's June forecast for 103 million tons and would mean a drop of 2.1 percent from the prior crop year.
Soybean futures for November delivery fell as much as 1.3 percent to $8.385 a bushel in Chicago on Friday.
China slapped duties on U.S. soybean shipments earlier this month in response to Donald Trump's tariffs. As a result, the Asian country will pay more for the oilseed, slowing its use of soybean meal -- a product used to feed hogs. The Asian country could turn to using more of its stockpiles, as the USDA forecasts an 18 percent decline for China's inventories in 2019.
China's soybean imports dropped 10 percent to 8.7 million tons in June from a month earlier, the General Administration of Customs said on Friday. The USDA's forecast for lower purchases is in line with a May prediction from the China National Grain and Oils Information Center, which estimated 2018-19 imports falling to 95 million tons.
Mnuchin Says He's Following Soybean Prices Daily as Tariffs Hit
China has been avoiding U.S. soybeans and shifting its purchases to other countries. The changing trade flows and lower consumption will probably drive global soybean inventories up to a record and boost U.S. stockpiles as American shipments drop. Farmers in Brazil, the world's biggest exporter, may boost production in response as China's purchases from the South American country rise, the USDA said.
To contact the reporter on this story: Shruti Date Singh in Chicago at ssingh28@bloomberg.net
To contact the editors responsible for this story: Simon Casey at scasey4@bloomberg.net, Phoebe Sedgman
©2018 Bloomberg L.P.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
