Significant drop of Chinese soybean imports in August

China imported 7.8 million tons of soybeans in August, 29% more than in the same month last year. Imports in the first eight months of the year were nearly 10% up on the same period last year. As compared to their record level in July, imports declined by 18%. The figures could also be weaker in the next few months because the supply of cheap South American soybeans is running out and larger shipments are only likely to come out of the US from November, notes Commerzbank. 

So far, however, orders have fallen significantly short of last year because US prices are still seen as too high to generate robust demand from Chinese processors. The depreciation of the renminbi is making things more difficult, as it makes soybeans invoiced in US dollars more expensive in local currency. Therefore, processors should be able to pass on the lion's share of the price burden to consumers, suggests Commerzbank.