A flood of Brazilian soybean cargoes into China is weighing on soymeal purchases and may curb buying of beans later in the year, traders and analysts told Reuters. After a record 12 MMT of soybean arrivals in May, 11 MMT in shipments are expected to arrive at Chinese ports this month, two Beijing-based traders at commodities consultancy Zhouchuang said. They noted July’s soybean arrivals also are expected to be near 11 MMT, with another 10.5 MMT booked for August. Most of the summer shipments will originate from Brazil.
While soybean arrivals are active, soymeal demand is weak following months of losses for hog farmers. Soymeal demand is not expected to improve during the heat of summer when hot weather typically curbs meat consumption. As a result, feedmakers are limiting their soymeal inventories, which will back up supplies at ports and could lead to some cancellations or deferring delivery on some shipments.
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