On Wednesday, according to available customs data, soybean imports from the United States by China has surged in November in comparison to the previous year.
China has purchased 2.56 million tonnes of U.S. soybeans, up from zero a year ago and 1.147 million tonnes in October, after it waived import tariffs for select American cargoes.
In November 2018, shipments of U.S. soybeans had plunged to record levels with buyers staying clear of the U.S. market after China slapped hefty tariffs on a range of U.S. goods including soybeans.
Following negotiation in the trade war, which has tanked China’s economy to its 30-year low, China has resumed the purchase of U.S. cargoes.
Recent months have seen an increase in purchase after Beijing issued tariff-free quotas in a strategic move aimed at reducing the intensity of the U.S.-China trade war.
In November, China had purchased 3.86 million tonnes of soybeans from Brazil, down 24% from 5.07 million tonnes in the same month last year.
U.S. soybeans usually dominate the market in the fourth quarter as the autumn harvest kicks in.
Much of China’s purchase of soybeans goes to feed its massive livestock sector.
Demand for soybeans has taken a toll following the outbreak of a severe African swine fever disease which has decimated China’s massive pig herd, leaving a huge gap in the supply of its favorite meat.
In recent months however, China’s pig herd has started to recover and the government has adopted a series of measures to boost production.