February 17, 2011

China's February soy imports seen at 3.1 million tonnes

China's soy imports in February are likely to reach 3.13 million tonnes, a 37.5% decline from January's volume, but up 6% on-year if realised, the Ministry of Commerce said Tuesday (Feb 15).

The estimates are based on reports from importers during the January 16-31 period.

Imports in March and April are seen around three million tonnes each month, lower than four million tonnes and 4.2 million tonnes a year ago, said the National Grain and Oils Information Centre.

Market participants have said they expect soy imports to fall from last year's record-setting pace as US soy prices reach their highest levels in more than two years.

Imports normally jump after the Lunar New Year, but Chinese buyers earlier had deferred soy cargoes and some have shifted to later shipment of South American supplies from US cargoes.

Another key reason for the expected decline, traders said, is that Beijing, concerned about stubborn domestic food inflation, has asked major oil crushing plants not to raise retail prices of edible oils until the end of March. It has also been releasing state reserves to cap domestic price rise.

Soyoil imports for January and February were estimated at 65,600 tonnes and 118,003 tonnes, respectively, according to commerce ministry.