February 25, 2011

China's March soy imports seen to hit yearly low

China's commerce ministry said it expected soy imports in March to remain low at 3.16 million tonnes, the lowest level in a year.

The March import forecast is about the same as the projection for February, which the ministry revised up slightly on Thursday to 3.17 million tonnes, the lowest since March 2010, due to poor crushing margins late 2010 and seasonal low demand for soymeal.

But imports would pick up from May, seen returning to the level of five million tonnes each month as crushing margins improved after the Lunar New Year.

"Crushers have stepped up purchases after the Lunar New Year and some have bought cargoes for shipment as far as January next year. Margins for forward-month cargoes are profitable," said one industry analyst.

Chinese buyers have shifted to South American supplies from May.

Commerce ministry figures also showed that China's soyoil imports in March were seen at 1,000 tonnes, much lower than 108,005 tonnes seen for February.