March 31, 2005

China 2005 soy acreage expected to be stable

China's 2005 soy acreage is expected to be "relatively stable" from 2004, the Ministry of Agriculture said.

The ministry didn't provide last year's acreage.

For the 2004-05 marketing year, which will end in August, the ministry said it expects an increase in soy supply and a steady rise in soy demand, but total supply will outstrip demand although ending stocks and stock-consumption ratio will be at "safe levels."

However, the rate of growth for soyoil demand is expected to exceed that of supply in the 2004-05 marketing year, leading to lower ending stocks and stock-consumption ratio, which will nonetheless remain at the high levels seen in recent years.

The ministry said it expects both demand and supply for soymeal to grow mildly, and foresees flat ending stocks and stock-consumption ratio compared with last year.