China's soy imports weak on low crushing margins

China's purchase of imported soy is seen to decline in coming weeks amid expectation of larger arrivals in the months ahead, after strong imports squeezed crushing margins.

Prices for imported soy offered at ports fell by 2.6% last week, which dented buyers' interest in booking more imports, according to a survey by the China National Grain and Oils Information Centre (CNGOIC).

Crushing margins had fallen to about RMB300 (US$43.96) per tonne, down 40% from last month, but still higher than normal levels.

Meanwhile, soymeal prices recovered slightly from the earlier decline. However, the market remained weak due to more supplies from crushing plants.

The corn market was also weakened after farmers sold more of their harvest. High domestic corn prices have led to reduced purchases by corn processors and feed mills, most of which still need corn for inventory build-up.