China soy imports plummet to lowest in three months

China's soy imports in February fell to the lowest in three months after record shipments and because the week-long Lunar New Year holiday reduced demand.

Imports jumped to a record 42.6 million tonnes in 2009 as government measures to support prices made local crops more expensive for crushers. Surging shipments, driven by increasing consumption and the purchase of domestic supplies for state stockpiles, helped lift CBOT futures 13% in the last quarter.

''It is expected after large imports at the end of last year and in January, crushers felt less need to replenish their inventories,'' an analyst said. ''February imports also tend to be less'' because of Lunar New Year. The vacation started on February 14.

The most-actively traded soy contract for September delivery in Dalian was little changed at RMB3,843 (US$563) a tonne at 2:16 p.m. today.

China may increase purchases to a record for a second year as rising incomes and an improving economy spur consumption of vegetable oil and meat, Wang Yinji, a deputy general manager at COFCO Oils & Grains Co., said.

Imports may rise to 44 million tonnes in the 2009-10 marketing year, Wang said.