BEIJING, (Reuters) – China’s soya imports from the United States dropped in March compared to a year ago, according to customs data on Wednesday. This was due to lower margins that curbed buyers.

According to data provided by the General Administration of Customs, China is the top soybean importer in the world. It imported 3.37 million tonnes of soybeans last month from America, which was down from 7.18 millions a year ago.

According to data, the trend in U.S. shipment volumes for 2018 was lower. Imports fell 30% to 13.4 Million tonnes during the first three month of 2022, compared to a year ago.

After a January 2020 trade agreement, Beijing purchased more U.S. agricultural goods including soybeans to support last year’s imports.

U.S. cargoes grew further in March 2013 after rain reduced the harvest from Brazil and increased exports to the United States.

On Wednesday, data showed that soybean imports in Brazil for March 2017 were 2.87million tonnes. This is an increase from the 315.334 tonnes one year ago.

China imported 6.37 Million tonnes of oilseeds from Brazil during the first quarter. This is 370% more than the 1.35million tonnes it received a year ago.

Last year, shipping delays caused by Hurricane Ida in America cut the export window for American cargoes. Chinese buyers who were unable to afford the high crush margins of American cargoes cut their imports and waited until the Brazilian harvest.

Brazil experienced a severe drought this year which caused a reduction in production and delayed some shipment. Chinese buyers began to look at U.S. soybeans as they rose in price for Brazilian cargoes.

Traders said that Chinese buyers may buy more U.S. cargoes to offset the high price of Brazilian exports.

Low crush margins caused by low hog margins continue to impact soybean purchases. Soybeans are crushed and made into soybean meal, which is used in the livestock sector as well as for cooking.

The major Sichuan producing province now charges farmers 240 Yuan ($37.51 per pig).

China’s margins for hogs remain largely negative since last year’s middle.

($1=6.3988 yuan)