China plans to amass soybean reserves in anticipation of a prolonged trade conflict with the U.S.
In a recent report by Bloomberg, it has been revealed that China's soybean stockpiles have reached a record high, standing at approximately 6.8 million metric tons. This is the highest level since March 2025, according to the General Administration of Customs of China.
The stockpiling of soybeans is a strategic move by China to guard against potential shortages due to the ongoing trade dispute with the U.S. The shift in primary soybean supplier from the U.S. to Brazil, which began in September 2021, has been a significant factor in this development.
In August 2022, China imported 12.28 million metric tons of soybeans, making Brazil the main supplier. During the same period, U.S. exports to China amounted to $97.11 billion, according to the General Administration of Customs.
The ongoing trade war between China and the U.S. is affecting bilateral trade, leading to a decrease in overall trade volume. In the January-August period of 2022, bilateral trade between the two countries decreased to approximately $380 billion, representing a 14.4% year-on-year drop.
Interestingly, China's imports fell at a faster pace than U.S. exports, with a drop of 15.5% compared to 11%. It's likely that China hasn't booked any U.S. cargo for the 2025-2026 soybean season.
Despite the decline in imports, China's export figure in bilateral trade is still nearly three times that of U.S. imports, amounting to $282.95 billion. This underscores China's continued importance as a global trading partner.
The decrease in soybean imports from the U.S. is a reflection of the complexities and far-reaching effects of the trade war between the two economic giants. As the situation continues to evolve, it will be interesting to see how these trends develop in the future.
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