The agricultural industry in China contributes to about 18 of the whole world’s cereal grains. It has the largest number of the total output of products, but the cultivation of crops is a lot less than what China output. China uses only 10% of its total area for the crops’ cultivation. China is the biggest importer of many agro-products, not having enough of its own land resources. The South-Asian region also uses soybeans to feed their domestic livestock.
China is the world’s largest importer of soybean, with an aggregate import value of $2.5 billion for the year 2021 so far. Retrieved from our import-export datasets, the value shown is as per the availability of China trade data, i.e., September 2021. We will look at the China imports of Soybean from the USA till now and the top regions the USA exports the soybeans.
China Soybean Imports From US
Recently, soybean’s shipment delays in China from the USA have resulted in a cut from China. Shipment delays following Hurricane Ida in the USA Gulf Coast, resulting in lower imports of soybean to China, is likely to decrease the trade between both countries. On August 29, 2021, Hurricane Ida hit the region of Louisiana, which is a primary location for the USA soybean and corn exports. It affected the prominent production of almost 60% of the total USA grain exports.
China imported the highest volume of soybeans from the USA in the third quarter of 2020. The third quarter of 2020 records aggregates net weight soybean imports of 10.8 million kilograms. The lowest volume of soybean imported in China is $1.28 million kilograms of soybeans, recorded in the fourth quarter of 2020.
Brazil is the highest soybean exporter for China, followed by the USA. Last year during Trump’s Presidency, the USA, and China made probably the biggest soybean deal for China in January 2020, under the phase one trade agreement. China imports soybeans for preparing various meals for feeding livestock and hog herds. China ramped up their demand for soybean imports, due to the fast and healthy recovery of their livestock and hog herds.
US Exports of Soybeans
The USA is the second-largest exporter of soybeans for China, following Brazil. The USA soybeans export in 2021 accounted for the highest one in March with an approximate share value of 16.47%, followed by the highest in April and February with the respective share values of 15.04% and 14.67%. The least exports are in September 2021 so far due to the fact that November is a prime time for the USA to sell its crops in the countries throughout the world.
The USA is the second-largest importer of soybeans, following Brazil at the topmost position globally. As per our market research experts, China demands soybean imports as it has limited land resources and primarily secures the use of land for supplies of staple foods such as rice, corn, and wheat. US imports of soybeans in China account for 60% of the global soybean, which accounts for the largest share of exports. This will further create an imbalance in bilateral trade between both countries.
Recommendation: Rising Biofuels Demand, Hike In Soybean Oil Trade and Price