Soybeans were among the best import commodities of China, marking a record as the second-highest for July as processors took advantage of cheaper prices of supplies from Brazil and by a recovery in demand for swine feed.

Figures released by the Chinese General Administration of Customs showed that more than 10 million tons of soybeans were shipped to the country, compared to around 8.6 million tons last year, and close to about 11.16 million tons recorded in June, which was the highest for 2020.

China bought just a little over 10 million tons of the commodity in July 2017. For the first seven months this year, the country imported 18 percent more at 55.14 million tons. July was also a record month for the country's import of offal and meat as it ramped up overseas purchases to cushion a shortfall and ease rising prices of pork after China's cattle population was decimated by the African Swine Fever.

According to Cofeed agriculture consultancy analyst Xie Huilan, production of soybeans in Brazil was in record numbers this year as its currency retreated. Xie noted that the price of beans in Brazil are not high with good crush margins, the reason why crushers bought quickly.

After registering record lows at the start of 2020, Chinese soybean and soy meal stockpiles substantially grew as shipments from Brazil replenished inventories. As a result, an overstock of soybeans is now proving to be a headache for some crushers in China, who had to reduce operations because of falling supplies earlier this year. But a robust demand from the livestock industry gives traders and crushers some guarantee the issue will not persist.

A manager with a Southern China crusher, who asked not to be named, said that the reason why they have a growing stockpile of the commodity is that there was an advance buying from feed producers that slowed down shipments at the start of the month.

Chinese crushers and traders said imports of soybeans were seen to remain in huge volumes in the coming months granting profits remain stable and demand strong from livestock producers.

Stable crush margins from leading supplier Brazil will be a major factor that will drive China's imports, which are expected to remain strong until next month on increased buying from local crushers.

As local swine breeders see a rebound in their business, China's soybean orders may notch a record 96.5 million tons to cap the 2019-2020 period. The country has now turned to the United States for its soybean needs in the fourth quarter as inventories in Brazil fall.