China monthly soy imports may hit record

 

 

Soy imports by China, the world's biggest consumer, will probably climb to the highest level for a single month in May after crushers increased buying, the China National Grain and Oils Information Centre said.

 

Inbound shipments may advance to as much as 5.5 million tonnes after 4.3 million tonnes in April, the state-owned market researcher said. Shipments in April to July may total 18.8 million tonnes, according to reports.

 

Increasing Chinese purchases may support futures in Chicago, which have dropped 6.8% this year on record Brazilian and Argentine harvests. The economy in China, which buys more than half the world's soy exports, may have expanded 11.7% in the first quarter, the fastest pace in almost three years, according to reports.

 

China stopped approving permits for soyoil imports from Argentina last week, four industry executives said. The South American country is the leading exporter of soyoil and China the top buyer. The permit process halted in response to Argentina's anti-dumping investigation of Chinese goods.

 

Crushers ordered about 15 cargoes of the oilseed in the week started March 29 as processing profits increased, according to traders last week.

 

About half the cargoes were from Latin America for shipment between May 1 and September 30 and the remainder from US crops to be harvested in the fall, the executives said.

 

China imported 4 million tonnes in March, 3 million tonnes in February, 4.1 million tonnes in January and a record 4.8 million tonnes in December, according to reports.

 

Soy in Chicago climbed 0.5% to a seven-week high of US$9.8050 a bushel earlier on speculation China will purchase US supplies as a dispute disrupts Argentine shipments.

 

Analysts are expecting tightness in supplies of rapeseed and other oilseeds is supporting prices of soyoil and meal. Rapeseed in central and eastern China may be hurt by cold temperatures, the center said.

 

Soyoil for September delivery on the Dalian Commodity Exchange gained 0.2% to RMB7,734 per tonne at 11:30 a.m. local time, while soymea gained 0.4% to RMB2,867.