March 13, 2007

China's soy import 30 percent higher for first two months of 2007

China's soy import rose 28.5 percent in the first two months of the year compared to the same period in 2006, according to figures from China customs.

Although February's import of 1.18 million tonnes was 5.4 percent more than the same period last year, it was almost half of China's average monthly imports of more than 2.0 million tonnes.

Crushers had suspended production during the week-long Chinese New Year holidays and higher US soy prices had led to a lower volume of imports for the past three months.

Officials said imports would pick up again stronger than ever in March and April.

Expect arrivals of 2.5 million tonnes for March and April as imports pick up, said Zhang Liwei, an analyst with the China National Grain and Oils Information Centre.

Imports of edible oils rose a-third in the first two months to 1.17 million tonnes, customs figures showed. China imports mainly soyoil and palmoil.

The massive imports of soyoil expected in March and April had caused a 19-percent fall in domestic soyoil prices, which reached a record RMB 8,000 (US$1,032) per tonne late last year.