Soybeans flood the container!U.S. exports of soybean crates to Asia have surged
Shipments of us soyabean containers to Asia saw a seasonal surge in August.In previous years, the seasonal surge in demand had occurred in September.
Among them, Taiwan buyers accounted for the largest proportion of purchases.A source said container shipping is more competitive than bulk shipping.Container soybean imports are expected to continue to rise this year until the end of the fourth quarter of 2020.Normally, Taiwan imports about 120,000 tonnes of soyabeans a month, the equivalent of two bulk carriers.
Traditionally, the international soybean trade is carried mainly by bulk carriers, but some buyers have switched to container shipping in the past few years.Market sources point out that there is not much difference in quality between the two modes of transport.
In East Asia, container soyabean buyers tend to come from Indonesia, Malaysia, Thailand and Taiwan.Taiwanese buyers are particularly flexible in their approach to procurement, choosing bulk or bulk shipments based on cost-effectiveness.
Generally speaking, the bulk volume of container soybeans is about 20-22 tons, and the cost per ton is lower. The price of soybeans transported from the United States to Taiwan by container is about 5% lower than that of bulk transportation.Bulk soybean shipments often reach 60,000 tons, a huge difference that makes many buyers prefer bulk shipments.
On Aug. 27, S&P Global Platts valued panamax soybeans on a Chinese CFR basis at $427.05 a ton, up about 4% from the end of July.
In the long run, us container soyabean exports to Asia will increase, according to delegates at a recent online conference on GLOBAL trade in US soybeans.
Eric Wenberg, executive director of the Soybean and Grain Alliance, said interest in container shipping has been growing year by year.Among the reasons: easier access to inland areas without the need for complex infrastructure to handle containers;Meet a customer's need to purchase a specific quantity.We expect the container market to continue to grow.
China's total soybean imports are expected to increase about 20 percent to nearly 100 million tons in 2020, said Gregg Doud, THE U.S. Trade representative. China's purchases of U.S. soybeans surged in August, with the U.S. shipping 630,000 tons of soybeans in the first week alone.
At the same time, demand is rising in Southeast Asia.American soybean exporters are looking for new markets in Southeast Asia to increase sales.
Our buyers include food companies in Thailand, soya milk companies in Vietnam and tofu companies, said Adam Buckentine, director of Redwood Group.As the local economy continues to grow, so does consumer demand for high-end products.
Industry insiders warn that as export markets develop, there are occasional shortages of equipment and containers, such as the difficulty of shipping empty containers to soybean producers in the U.S. Midwest.
