February 14, 2007

China expected to import more soy from Brazil as US supply tightens

China is expected to import more Brazilian soy this year as supply tightens in the US, according to the director-general of the Brazilian office of Chinatex.

Last year, Brazil exported 11.6 million tonnes of soy to China, compared to 9.8 million tonnes from the US, Macauhub reported, citing figures from Brazil's Foreign Trade Ministry and the USDA.

US soy production is expected to decline 7.4 percent this year as more farmers plant corn for ethanol.

Liones Severo, the director of the Brazilian office of Chinatex said the reduction of supply of soy in the US would have an impact on world soy supply, which would lead to greater demand from China for Brazilian soy.

Brazil has vast areas and availability of land for planting, and could increase its production to meet international demand, Severo said.

China may also expand imports of Argentinean soy. Last year, it imported 6.2 million tonnes from the South American country.

Chinatex is the third largest Chinese buyer of Brazilian soy. The company bought 1.6 million tonnes in 2006, and expects to buy 2 million tonnes this year.