According to Chinese customs data released Monday, June 10, the ongoing Sino-US trade war and the deadly African swine fever restrained demand for soybeans and resulted in a 24% reduction in overseas soybean purchases in May compared to the same month last year.

According to the General Customs Administration of the country, 7.36 million tons of soybeans were imported to China in May compared to 9.69 million tons last year. The indicator in May also decreased from April 7.64 million tons, when the supply volumes increased, as buyers delayed the cargo due to changes in taxes.

In the first five months of 2019, China imported 31.75 million tons, which is 12.2% less than the same period last year, because higher tariffs for deliveries from the United States, the second largest soybean supplier to China, are holding back purchases.

“Soybean imports were lower as higher tariffs for supplies from the US continued to push. And demand is weak due to African swine fever. Deliveries from Brazil also plummeted, ”said Xie Huilan, an analyst at Cofeed, an agribusiness research firm.

In July last year, China set a 25% tariff on US soybeans as part of a trade war between the two largest economies in the world, as a result of which the import of American beans was practically stopped until the two countries agreed on a trade ceasefire. Since then, China has purchased about 14 million tons of soybeans in the United States.

But Beijing again stopped buying goods from the United States in early May, when Sino-US trade tensions resumed. China plans to stockpile up to 7 million tons of US cargo reserved during an earlier trade cease in preparation for a protracted trade war.