* Breeders stopped buying on healthy demand
* Water in Brazil’s main exports will be slowly declining, encouraging U.S. exports
* New cases of African swine fever hurt pig production, soymeal application
BEIJING, March 7 (Reuters) – China’s soybean imports in the first two months of 2021 fell slightly from a year earlier, customs data showed on Sunday, as waters in Brazil’s main exports slowed some of loads.
The world’s major market for soybeans imported 13.41 million tons of oilseeds in January and February, down 0.8% from 13.51 million tons a year earlier, according to data from the General Administration of Customs.
The Chinese customs office releases preliminary trade data for January and February together rather than separately to eliminate distortions caused by the Lunar New Year holidays, which this year were in mid-February .
Soybean imports reached a higher level than last year as brewers increased purchases on better margins and healthy demand from the pig sector.
Chinese importers typically turn to U.S. shipments in the fourth quarter and early months of the year when American beans take control of the market. Beijing also contributed to the purchase of U.S. farm products, including soybeans, to fulfill its promise in a bilateral Stage 1 trade agreement reached in January 2020.
Breeders would also start buying from Brazil early in the year as the new South American crop enters the market, but rains have delayed the harvest there and encourage the export of U.S. beans.
Demand in China has helped rebuild a once swine flu herd that was devastated by the deadly African swine fever outbreak. A recent outbreak, however, is hurting pig production in some northern and northeastern areas, reducing demand for soymeal, a major ingredient in food.
Chinese crushers introduced soybeans for crushing in soymeal to feed the livestock sector, and soyoil for cooking oil. (Reporting by Hallie Gu and Ryan Woo; Editing by William Mallard)