March 21, 2007

China's soy import to rise 10 percent this year

China's soy import may rise 10 percent this year on increased crushing capacity, the China National Grain and Oils Information Centre said.

The centre's sentiments were echoed by the USDA in a report issued March 9, who said China's soy imports in the year ending September are forecast to reach 31.5 million tonnes, up from 28.3 million tonnes in the previous year, an 11.3-percent increase.

Most of the imported soy would be destined for crushing facilities, whose capacities has grown 10 million tonnes in the past year, Zhang Liwei, a deputy director at the centre said. 

Imports for the first two months of the year are already 30 percent higher than the same period last year and are expected to be even higher for the next two months.

The expanded processing capacity would help meet growing demand for soy products, mostly soymeal used in livestock feed, Zhang said.

China's voracious appetite for soy may prompt further price increases in world markets, where soy prices last month rose to their highest in two years as the growing popularity of corn sparked rumours of reduced US soy plantings.

China imports soybeans mostly from Brazil, the US and Argentina.  

China's soy imports next year are expected to remain strong as an increase of 9.5 percent is expected, according to the USDA's Foreign Agricultural Service.

Meanwhile, China's total soy processed would rise at least 6 percent this year to about 37 million tonnes, Zhang said.