Soybean Import to Guangdong Up YOY in May 2017

According to China Customs statistics, for January-May this year, the import of soybeans to Guangdong Province totaled 4,714,000 tons, up 17.1% year-on-year (YOY); worth 13.71 billion China yuan, up 37.2% YOY; average import price at 2,909 yuan per ton, up 17.1% YOY. See the chart below:

Characteristics of Soybean Import to Guangdong in May Alone:

(1) Volume increased month by month.
In May, the soybean import reached 1,123,000 tons, up 18.1% YOY; worth 3.17 billion yuan, up 31.6% YOY; average price at 2,824 yuan/ton, up 11.4% YOY.

(2) Mostly imported by ordinary trade mode.
This May, Guangdong imported 1,122,000 tons by ordinary trade, up 18.1% YOY, accounting for 99.9% of the total import.

(3) Mostly imported from Brazil, 60% less from the United States.
This May, the soybeans from Brazil reached 1.1 million tons, up 21.9% YOY, accounting for 97.9% of the total; those from the USA 19,000 tons, down 60% YOY, accounting for 1.7%.

Considerable Problems:

(1) Brazil's currency devaluation caused Brazilian soybean underselling, an impact on international soybean price.

(2) China will give subsidies to soybean producers, helping domestic growth to reduce the import.