By Hallie Gu and Shivani Singh
BEIJING, Oct 13 (Reuters) – China’s soybean imports fell 30% in September from the same period a year earlier and hit the lowest level for the month since 2014, customs data showed on Wednesday, as low processing margins dampened demand.
China, the world’s leading consumer of soybeans, acquired 6.88 million tonnes of oilseeds in September, compared to 9.79 million tonnes in the same month last year, according to data from the General Administration of Customs.
“The numbers were within market expectations,” said an industry source, who declined to be named because she was not authorized to speak to the media.
“Crushing margins were bad, while some processing plants also suspended operations for regular maintenance,” the source added.
Chinese processing plants stepped up purchases of soybeans at the beginning of the year in anticipation of strong demand from rapidly recovering pig farms.
However, consumption began to weaken as declining margins from pork production put pressure on crusher plant revenues.
China imported 73.97 million tons of soybeans in the first nine months of the year, 0.7% less than in the same period last year, according to official data.
Shipments in October are also expected to be lower compared to the same month last year, as low margins continue to hold back purchases, while the slowdown in US exports due to Hurricane Ida will also reduce shipments, traders said.
Disclaimer: This article is generated from the feed and not edited by our team.