China's Soybean Demand Slows: What It Means For ASEAN Manufacturers
Thursday, October 1st, 2026
China’s weakening soybean demand could have implications for commodity sourcing and feed supply chains across Asia as high inventories, weak animal feed demand and poor crushing margins reduce import appetite.
Reuters reported that Chinese soybean buying is expected to decline in the coming months, with private processors having largely covered requirements through early February using supplies from Brazil, Argentina and state reserves.
Soybean inventories at 111 Chinese crushing plants reached 7.96 million tonnes in the week of September 25, their highest level in at least 15 years. Meanwhile, Chinese buyers booked around 50 soybean cargoes during the first three weeks of September — the lowest level in four years.
The slowdown is also affecting the competitiveness of different origins. Brazilian soybeans were quoted at around US$590 per tonne including cost and freight, excluding tariffs, while Brazilian beans typically offer higher oil content, making them more attractive to Chinese crushers.
For ASEAN manufacturers, the developments matter because soybeans are an important input into regional animal feed and food supply chains. Changes in Chinese purchasing can influence regional commodity flows, supplier competition and procurement conditions.
Reuters also noted that US soybeans remain subject to an additional 10% tariff in China, while private Chinese crushers have continued purchasing South American supplies.
“Unless margins recover, commercial buyers are unlikely to book more cargoes from overseas,” said Johnny Xiang, founder of AgRadar Consulting.
For manufacturers and feed producers, the situation reinforces the value of monitoring both commodity fundamentals and trade-policy developments when planning procurement and managing raw material exposure.
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