January 26, 2011

China to slow soy imports amid mounting port stocks

China's soy imports in January and February are likely to slow down following a recent surge as inventories are building up in the country's ports, Hamburg-based oilseeds analysts Oil World said Tuesday (Jan 25).

Growth in overall global import demand for soy has also been dented by the rise in US soy prices, it said. US soy futures rose to a 30-month high in January partly because of Chinese demand and crop concerns in Argentina.

"In China, soy imports are set to decline in Jan/Feb 2011 following a record 10.9 million imported in Nov/Dec 2010 which resulted in unusually large stocks at the ports," Oil World said.

"But (China's) imports will start rising again from March or April onward to satisfy rapidly expanding domestic requirements. More than 90% of the Chinese soy crush is covered by imported soy."

China had on January 21 agreed to buy 11.5 million tonnes of US soy for delivery over the next year or so, although the deal's impact on overall imports is unclear.