Wedoany.com Report-Aug. 17, China, the world’s leading soybean importer, is diversifying its trade in oilseed products by increasing soybean oil exports and exploring soybean meal imports from Argentina. These shifts, though modest in volume, mark a change in traditional trade patterns, supporting global market demands.

In the first half of 2025, China exported at least 127,000 tonnes of soybean oil, surpassing its total exports for 2024, according to customs data. The oil is primarily shipped to countries like South Korea, Malaysia, and India, where demand for edible oil remains robust. Analysts at Guotai Junan Futures Co. noted: “The rise in exports is driven by China’s need for soybean meal, while other countries need soybean oil.”

The global soybean oil market is bolstered by strong demand for biofuels, particularly in the U.S., where about half of domestic production supports renewable diesel. Meanwhile, domestic biofuel mandates and less competitive pricing in countries like Brazil and Argentina have constrained additional supply, creating opportunities for China’s exports.

Within China, soybean oil inventories have risen by 70% since May 2025, reaching 1.12 million tonnes, as reported by Shanghai-based consultancy Mysteel. To meet domestic demand for soybean meal for livestock feed, Chinese processors have increased crushing rates, resulting in surplus oil. This has enabled China to export excess soybean oil, leveraging shorter shipping times—two to three weeks to India compared to over six weeks from South America.

China is also testing soybean meal imports from Argentina, with Bunge Global SA recently supplying at least two shipments of this high-protein feed ingredient to Chinese buyers. This move diversifies China’s supply chain, traditionally reliant on importing soybeans for domestic processing into animal feed.

These trade adjustments reflect China’s strategic response to global market dynamics, balancing domestic needs with export opportunities. The increase in soybean oil exports supports countries with high demand for edible and biofuel oils, while the exploration of Argentine soybean meal imports enhances China’s feed supply options. These efforts contribute to a balanced global vegetable oil market, aligning with demand for sustainable fuel and feed solutions.