China imports record amount of soybeans in the just finished crop year 2014/15

Following the slight downward revision of the anticipated US crop by the US Department of Agriculture (USDA), the soybean price is now also finding support from another quarter, China reported September soybean imports of 7.26 million tons yesterday. 

This may be the second monthly decline following the record figure achieved in July, yet the September import level this year was nonetheless much higher than in previous years. 

"This is partly related to the fact that China is focusing its demand increasingly on South America, which can deliver at this time of year whereas imports from the US are shipped around the end of the year. In the 2014/15 season which has now ended, China imported a record 78.3 million tons of soybeans, which is 11.3% more than in the 2013/14 season", says Commerzbank. 

Since crushers in China have already stockpiled sufficient quantities, stocks are around 13% higher than last year, and economic growth is somewhat slower, imports in the next few months can be expected to be somewhat weaker. 

They are estimated at around 6 million tons. Although soybeans in Chicago are at nearly 900 US cents per pound again, their upside potential is surely very limited given the ample international availability.