BEIJING/SINGAPORE- China is significantly increasing the rate of inspections on imported soybean cargoes, three soybean traders told Reuters on Friday, lengthening already slow and costly clearing times in the world’s top buyer of beans.
China last month introduced new procedures at customs for discharging soybeans, which had already delayed clearing times and pushed up costs for buyers of the world’s most-traded protein source.
In recent days, ports have also stepped up sampling of cargoes to check for pests and residues, the traders said, which will further add to costs and hurt demand.
“It is a double whammy. Earlier there were delays in getting import licenses and over the last few days there are more stringent checks on cargoes,” said a Singapore-based trader at an international trading firm.
China, which buys more than 60 percent of soybeans shipped worldwide, mainly takes cargoes of the oilseed from Brazil and the United States.
The stricter customs checks come at a time of ample global supplies of the oilseed, which is crushed to make protein-rich soymeal for animal feed and cooking oil.
Slow clearing times at Chinese ports are pushing up spot soymeal prices, exacerbating recent losses for farmers in China who raise half of the world’s pigs.
Soymeal prices in China have jumped close to 14 percent since the beginning of April.
At China’s top soybean port in Rizhao, which handled more than 10 million ton of soybeans last year, all vessels arriving in the last two days have been inspected, said two China-based traders with knowledge of the situation. – Reuters
