Near-Record Soybean Crop Projected in China

China’s soybean crop in the 2022-23 marketing year is expected to reach a near-record 19 million MT due to higher yields, according to a Global Agricultural Information Network report from the US Department of Agriculture’s (USDA) Foreign Agricultural Service.  The report said soybean yield is estimated at 2.03 MT per hectare, an improvement by 4% from year-ago.

On the other hand, the country’s import of soybean was 4.14 million MT in October, a drop by 19% from previous year.  This is the lowest data for any month since 2014 according to Reuters. The decline was tied to reduced buyers’ purchases due to high global prices and poor crush margins.  China is by far the world’s largest consumer of soybeans with domestic consumption expected to reach 116 million MT in 2022-23, exceeding previous year at 106 million MT, USDA said.

Meanwhile, USDA forecast total oilseed production, which includes rapeseed, peanuts and cottonseed, at 64.5 million MT, increasing by 800,000 MT from the previous USDA forecast.  According to USDA, government incentives for oilseed production (particularly soybeans), high prices for major oilseeds, and grown conditions in major soybean-producing regions fueled increases in area and yield.