According to China’s Ministry of Agriculture and Rural Affairs, China’s sow herd rose for the first time this year in June, up 0.9% month-on-month (m-o-m) and 0.5% year-on-year (y-o-y). Soybean imports to China (top global soybean importer) have risen in recent months, with substantial supply coming from Brazil. According to market sources, China has purchased beans for October delivery from Brazil – historically peak soybean export season for the US. While global soybean crushing declined in June for the seventh consecutive month this year due to declining soy meal demand in China and the EU over the past year, China’s crush has risen in the past weeks; the latest data from China’s National Grain and Oil Information Centre (CNGOIC), reporting a 5.2% week-on-week (w-o-w) increase in China’s soybean crush. The slow recovery of the country’s hog sector has reduced China’s soymeal demand in the past year. However, the recent pick-up in soybean purchases over the past month, increased crush, and the slight recovery in sow herd will be watch-points for China’s demand direction.
