According to today's USDA Grain Transportation Report, in recent weeks, China has inspected a growing share of its imported soybeans—according to several soybean traders (as reported by Reuters).
In at least one port—the Port of Rizhao—all arriving vessels have been inspected, rather than the port’s previous average of only one-in-five arriving vessels. (As China’s top soybean-import port, the Port of Rizhao handled more than 10 million metric tons (mmt) of soybeans in 2022.)
Delays caused by more inspections can lead to increased demurrage costs for U.S. shippers.
As of May 25, accumulated U.S. soybean exports to China are 9 percent higher in marketing year (MY) 2022/23 than last year.
However, for the rest of MY 2022/23, China is expected to buy more soybeans from Brazil than from the United States, leveraging Brazil’s large supplies and low prices (Grain Transportation Report, May 11, 202).
According to USDA’s May World Agricultural Supply and Demand Estimates report, China is expected to import a total of 98 MMT of soybeans in MY 2022/23, which would be 7% more than last year.