March 22, 2012

China's H1 soy imports rise 25% on-year

Due to strong demand from animal feed producers, China will import about 29 million tonnes of soy in the first half of 2012, a quarter more than the same period of the previous year, an official said.

The imports are just over half the 55 million tonnes of soy China is forecast to import this year from global suppliers. Last month, a Chinese trade delegation signed deals to buy a record 13.4 million tonnes of soy from the US.

Chinese crushers have bought enough soy to last until June, and they are now looking for cargoes from July to October, the China National Grain and Oils Information Center (CNGOIC) said in a report posted on its website (www.grain.gov.cn).

The report said crushers are likely to load 4.7 million tonnes in March; six million tonnes in April and 5.5 million tonnes in May.

China imports from the United States, Brazil and Argentina.

Traders said rising domestic soymeal prices have provided crushers with good profit margins. Soymeal prices have jumped more than 10% this year due to higher demand from pig farms.

Benchmark May US soy futures are up almost 13% so far this year, nearly reversing last year's 14% decline largely due to China's appetite for the oilseed and a drought in South America which has reduced supplies.

China's soy imports could rise in June to a record high of nearly seven million tonnes, Li Jianlei, a senior analyst at COFCO Futures, was quoted by an industry website as saying.

In an indication of next year's demand, the CNGOIC said Chinese soy crushers had also booked up to 1.5 million tonnes of soy cargoes from South America for March to May shipment in 2013.