Rising Brazilian soybean imports could hurt China’s palm oil demand
03 July 2020
Chinese palm oil imports fell in 1Q amid COVID-19 outbreak
China has ramped up its purchases of Brazilian soybeans in May, as weather improved in the South American nation amid uncertainty surrounding US-China trade tensions. The weakening Brazilian real also boosted its soybean price competitiveness against US supplies. (Reuters) Traders are expecting huge monthly soybean arrivals in China of more than 9 million mt in June and July, as crush margins remain attractive. RIsing crushing activity would boost domestic soybean oil supplies. China’s demand for palm oil may weaken in the near-term, putting downward pressure on the 12kt E.Msia/China freights. Eastport Research & Strategy is projecting freights to fall in 3Q 2020.