South Africa is set to export about 200 000 tons of soybeans to China in November 2026, marking only its second soybean export deal with the country.
The South African Cereals and Oilseeds Trade Association (Sacota) notes in a statement that the transaction is a much-needed boost for the local industry.
The deal, secured by a multinational trading member of Sacota, follows China’s decision to waive all import duties on agricultural products entering the country.
Before the Zero-Tariff Preference Scheme was introduced, South African soybeans were subject to a 3% duty.
According to Sacota, the removal of the tariff gives South African soybeans an advantage of about $15 per ton (about R245) over global competitors in South America.
South Africa also has a geographic freight advantage of roughly $12-$15 per ton compared with South American exporters.
Volatility in global markets may also create short-term opportunities. Sacota says movements in the Chicago futures market do not always immediately filter through to cash export prices in Brazil or Argentina.
South African traders can also hedge local and export transactions weeks or months in advance through soybean futures contracts traded on the JSE.
Record harvest
The export deal comes after South Africa produced a record soybean crop during the 2025/26 summer grain season. The record harvest reflects the rapid growth of South Africa’s soybean industry in recent years.
The total area planted to soybeans has increased by more than 27% over the past five years, driven by improved soybean cultivars and growing expertise among local farmers, according to Sacota executive director André van der Vyver.
Soybeans are typically planted during October and November and harvested between April and May.
Although a mid-summer drought in late January and early February created uncertainty, rainfall returned in time across most production areas.
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On 23 April 2026, the Crop Estimates Committee forecast a maize crop of 16.8 million tons and a soybean crop of 2.8 million tons. Expectations of record production were accompanied by expectations of lower prices and higher exports, with early soybean export estimates of about 600 000 tons.
Export hurdles
However, the soybean export programme faced several challenges – yellow maize historically receives preference at export terminals at the Port of Durban, which limited the space available for soybean exports.
In addition, late rains also delayed harvesting, while tight inland stocks and demand from local crushing industries meant that limited volumes were initially available for export.