context: The PRC is accelerating diversification away from US oilseed imports, with South America consolidating its position as the dominant supplier. Brazilian soybeans now cover over forty percent of October arrivals, while buyers explore Argentine soybean meal as an alternative feed source. A trial cargo was arranged in June, marking the first bulk purchase since access was approved in 2019, but shipments have faced early hurdles.
Beijing's effort to diversify feed imports is now testing Argentine soybean meal as a new channel, reports Grain & Oil Daily.
Chinese feed companies booked three cargoes totalling 90,000 tonnes in July, the first significant Argentine meal purchases since 2019.
The first 30,000-tonne shipment, organised by trader Bunge, was diverted to Vietnam in August, described variously as a quality inspection issue and a commercial decision.
Despite this setback, a second vessel is being readied and a third is expected to follow. If these arrive successfully, market participants say Argentina could become a viable alternative source of protein meal, easing reliance on Brazil at a time when US volumes remain limited.
Trial shipments were priced around US$360/tonne CNF, competitive with domestic supply.
Analysts note the diversion highlights technical hurdles rather than systemic barriers, since Argentine meal already supplies demand in other Asian markets. Opening the channel fully is viewed as a major potential benefit for PRC feed resilience.
The shift comes as Brazil consolidates its dominance.
Chinese buyers booked 64 Brazilian soybean cargoes in the past two weeks, lifting October coverage above forty percent and premiums to a seven-year high.
By contrast, Chicago soybean futures fell after touching a two-month high when no new PRC purchases of the upcoming US crop materialised. Sources note October soybean procurement is already complete, leaving little room for US cargoes.
Domestic inventories are comfortable: imported soybean stocks at major crushers stood at 7.5 million tonnes in mid-August, twenty percent above the three-year average, while soybean meal stocks at 1.01 million tonnes were in line with norms.
With new-crop corn also pressuring feed markets, Argentine soybean meal may provide a useful supplement.
Together, these moves highlight Beijing’s broader strategy to diversify and de-risk critical feed imports under an increasingly volatile trade environment.