January 28, 2008

China accelerates soy imports to take advantage of lower freight rates 
 

Chinese soybean traders booked 15-17 soybean cargoes, mostly from South America, in the week ended Jan. 25, up from 10-11 cargoes in the previous week, commodities analysis firm Shanghai JCI said in an analyst report late Friday (January 26, 2008). 

This level of soybean imports has not been seen in the past several weeks and is likely to support Chicago Board of Trade soybean futures over the next few sessions.

"The main reason for the rise in soybean imports is (lower) freight cost. The freight rate (for panamax-sized cargoes) from the US Gulf to China is now at US$94 a tonne, from US$110/tonne in early January," said the report.