Thai soy imports demand seen to increase

The USDA's Foreign Agricultural Service (FAS) said on Monday (April 5) that the completion of two new soyoil crushing plants in Thailand will increase the demand for imported soy in the 2010-11 marketing year.

FAS said the expansion would help the two largest crushers in Thailand lower their production costs and improve their competitive position in the domestic soymeal and international soyoil markets.

The US market share of Thai soy imports dropped to its lowest level in recent history at 14% during the 2008-09 marketing year, according to FAS. However in the 2009-10 marketing year, the market share is estimated to double to 28% due to tighter supplies from Brazil and Argentina driven by dry conditions.

In addition, the agency expects that 2010-11 the US market will drop again as ample crops from these countries will replenish dwindling stocks. Also, soymeal imports will remain unchanged from the 2009-10 marketing year as the increase in domestic production of soybean meal from oil crushers will make-up for the increase in soybean meal demand.

In the 2009-10 marketing year, US soymeal imports increased sharply to 200,000 tonnes from 9,303 tonnes in the previous marketing year. FAS attributed the increase to an increase in price competitiveness of US soymeal and marketing activities by the American Soybean Association (ASA).

In 2010-11 US soymeal imports should be 150,000 tonnes as increasing supplies from South America will make their way into the market.