Soybeans are loaded on a truck after being harvested, in Pergamino, on the outskirts of Buenos Aires, Argentina, May 15, 2024.
On Thursday, four trade sources reported that several Chinese feed manufacturers collectively agreed to buy 30,000 metric tons of Argentine soymeal for shipment in July. The cargo, priced at $360 per ton on a cost-and-freight basis, is expected to arrive in Guangdong province, southern China, by September.
A Singapore-based trader at an international trading firm stated: "This is just a test case." The trader added: "If it goes through China's inspection and quarantine, we expect more deals." The purchase reflects efforts to ensure stable supplies, as China, the world’s largest consumer of protein-rich animal feed, relies heavily on soymeal produced from imported soybeans, primarily from Brazil and the United States.
Argentina, the global leader in soy oil and meal exports, met with a Chinese delegation on Wednesday, including Liu Huanxin, director of China’s National Food and Strategic Reserves Administration. Gustavo Idigoras, head of Argentina’s oilseed crushing and export chamber (CIARA-CEC), noted: "We spoke at length about the feasibility of exporting soybean meal, and he seemed open to it if commercial conditions allow."
The deal follows China’s 2019 decision to open its market to Argentine soymeal, driven by the need to diversify supply amid trade challenges. Until now, no significant bulk purchases of Argentine soymeal had been recorded, according to Chinese customs data. In 2024, China imported only 30,000 tons of soymeal, mainly from Denmark.
Idigoras highlighted Argentina’s substantial export capacity, stating: "Argentina exported 30 million tons of soymeal last year, so has very significant supply capacity for China's needs." However, he cautioned that finalizing such deals remains complex due to China’s preference for processing its own soybeans and ongoing procedural steps.
Lower prices for Argentine soymeal compared to domestically produced alternatives have encouraged this purchase. The initiative aligns with China’s strategy to broaden its sourcing options, reducing reliance on traditional suppliers. While inquiries from Chinese firms about Argentine soymeal are increasing, Idigoras noted: "There are many inquiries from Chinese firms over Argentine meal, but for now we have no confirmed transactions." This first shipment marks a step toward expanding trade ties and ensuring a stable supply chain for China’s feed industry.
