March 3, 2008

China's soy imports to rise 3 percent in MY08/09
 

China's imports of soy in MY08/09 are forecast to rise 2.86 percent to 36 million  tonnes from the estimated 35 million  tonnes in MY07/08, according to a USDA attache report posted Friday (February 29, 2008).

Brazil will continue to challenge the US to become the top supplier to China. US is likely to cede more market share as more soy being used for biofuel and lower production reduces exports.

On the other hand, an appreciation of the Chinese currency will also facilitate import increases from the US.

China's soy exports are forecast at 400,000 tonnes in MY08/09 and are likely to decline due to strong domestic demand. The removal of tax rebates and imposition of duties recently would also limit exports.