China has lowered its forecast for the 2018-2019 import season for soybeans due to the trade conflict with the U.S.
Chinese farmers are reducing their use of soybeans in animal feed as China has placed massive tariffs on U.S. soybeans. Imports of soybeans in the crop year that starts on October first will be 83.65 million metric tons, down 10.2 million from last month’s estimate of 93.85 million, according to China’s Ministry of Agriculture and Rural Affairs. Overall, the forecast is lower than the 93.9 million metric tons imported during the 2017-2018 crop year.
Bejing also claims the lower forecast is due to the promotion of lower-protein feed for livestock and poultry, and falling profits at pig farms reducing demand for soybean meal. China also raised its corn demand outlook on rising feed consumption and an expected increased ethanol production. Reuters reports that the outlook illustrates how China’s vast pig farming sector is rapidly adjusting to a possible prolonged trade dispute with Washington.
In July, China imposed an additional 25 percent tariff on U.S. soybeans.