March 23, 2011

China's commerce ministry has revised the country's soy imports in March to 3.9 million tonnes, up from earlier estimates of 3.65 million tonnes.

The March figure is 68% higher than imports in February, which were lowest volumes since November 2008, due to poor crushing margins. Beijing has taken a series of measures to cool domestic prices of edible oils.

A recovery in soymeal prices after the Lunar New Year has improved crushing margins for soy plants. The ministry expected imports by the world's top buyer at 3.42 million tonnes in April.

Buyers report no soyoil imports for March while imports in April were seen at 30,498 tonnes.

On the other hand, state-backed China National Grain and Oils Information Centre (CNGOIC) said that total soy imports to arrive in March are predicted to reach about four million tonnes in consideration of possible arrival of some delayed goods in February.

So far, China's imported soy stocks have reached 5.7 million tonnes. The current stocks nearly slumped 20% from more than seven million tonnes in December of last year and January of this year.

The CNGOIC forecasted that the soy imports will be flat on-year in the March-April period. That means coastal oil processing mills may slow down their production, which will help relieve stock pressure of soymeals.

The predicted further drop in soy stocks is also favourable to easing worries over relatively high level of soy inventory.