Chinese imports of soybeans during July were 8 percent smaller than in June as the nation digested a soy glut at its ports, said AgriCensus on Wednesday. Imports tumbled at the same time that China imposed retaliatory tariffs on U.S. goods in the escalating tit-for-tat trade war with the United States.
Beijing announced 25 percent tariffs on $16 billion worth of American products on Wednesday, matching U.S. finalization of a new tranche of duties, said the Los Angeles Times. The new U.S. tariffs are “very unreasonable,” said the Chinese Commerce Ministry.
Soybean shipments surged into China ahead of the tariffs that took effect in early July. The country’s General Administration of Customs said 8.7 million tonnes were imported in June. So far this marketing year, imports total 76.8 million tonnes, almost the same as a year ago but “way down from the 5 percent increase that analysts were predicting at the end of 2017,” said AgriCensus. The 25 percent tariff has raised the price of soybeans in China and reduced demand for the oilseed. Poor returns are discouraging Chinese pig farmers from buying soybeans to feed their animals.
A month ago, the USDA said China would buy 8 percent fewer soybeans during the year because of rising oilseed prices and a slowdown in domestic consumption of protein meal in livestock feed.