China's soy imports to stay high in January

China's soy imports in January are likely to stay strong at about 4.5 million tonnes after monthly imports hit a record in December at 4.78 million tonnes.

Falling soy prices on the Chicago Board of Trade could prompt Chinese traders to increase purchases from South America in the coming weeks after they booked more than 20 million tonnes from the US, said the China National Grain and Oils Information Centre (CNGOIC).

Chinese crushers have been buying aggressively over past months on good crushing margins and strong demand for soy after a lower domestic harvest of oilseeds.

China has also restricted rapeseed imports from Canada over disease concerns, which shifted the demand for edible oil and animal feed ingredients to soy. However, the heavy purchases could result in a surplus in the first quarter of the year, said the centre.

Soymeal prices fell this week and with heavy soy imports in the coming weeks, supplies could increase and weigh on prices.