China's November soybean imports up 7.8% on year, less than expected

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China's November soybean imports up 7.8% on year, less than expected

Audra 0 12 12.08 20:18
By Mei Mei Chu

BEIJING, Dec 7 (Reuters) - China imported 7.92 million metric tons of soybeans in November, customs data showed on Thursday, up 7.8% from a year earlier but lower than traders' expectations due to slower clearing of cargoes at customs.

The world's top importer of soybeans was expected by some traders to bring in as much as 10 million tons last month, after large purchases of the oilseed from top supplier Brazil.

However, the customs authorities are taking longer to issue import licences than before, which has delayed the unloading of cargoes, said Yuyun Chen, trader with Mingsui International(Shanghai) Trading Co.

Soybean vessels require an automatic import licence (AIL) to unload cargoes, which must be issued within 10 working days, but in practice have often been granted in a day.

Chen said customs was now taking up to 10 days to process the licences. Customs did not immediately respond to a fax seeking comment.

The slower clearing coincides with record imports in the world's biggest soybean importer this year and growing losses among hog farmers.

China buys soybeans to crush into meal for animal feed and oil for cooking. But soymeal demand for use in animal feed will decline as pig farmers struggling with low hog prices, high costs and increasing outbreak of African swine fever have ramped up slaughter of herds in recent weeks.

For the first 11 months of the year, imports by the world's top soybean buyer totalled 89.63 million tons, up 13.3% from the same period a year earlier, the data also showed. <CNC-SOY-IMP>

Arrivals in December could jump as last month's delayed cargoes get unloaded, said Chen.

"Soybean arrivals in December will probably jump sharply unless the delays get worse," he said.

Brazil has dominated shipments to China this year but arrivals of U.S. soybeans may rebound in the coming months as China has ramped up purchases since November in a wave of buying amid improving ties between the two countries.

The interest in U.S. beans has also coincided with a severe drought in Brazil that has disrupted planting and CNC machine for plastic parts compromising the outlook in the world's biggest soybean grower. (Reporting by Mei Mei Chu; Editing by Sonali Paul and Alexander Smith)

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