April 26, 2006

 

China soybean imports up nearly 30 percent as bird-flu concerns subside

 

 

China, the world's largest importer of soybeans, increased its soy purchases by 27 percent in March, as worries about bird flu fade. 

 

2.6 million tonnes of soybeans were imported in March, the Beijing-based Customs General Administration of China announced on Tuesday (Apr 24).

 

Lower forecasted demand for animal feed this year had contributed to an 8.5 percent fall in soybean prices last year.

 

Nie Ben, an agriculture analyst and trader at Liaoning Cifco Futures Co in Dalian, said the impact of bird flu on China's soybean consumption is smaller than expected, adding that producers are now importing soybeans to replenish stocks.

 

China may need 106.7 million tonnes of animal feed in 2006, assuming bird-flu outbreaks are contained by June, Wang Jun, deputy director of agriculture finance provider Beijing Zhenghua Investment Co Ltd said.

 

There has been a 5.7 percent increase in the amount of animal feed in 2005 and a 10 percent gain in 2004, he said.

 

China agreed to buy nearly 5 million tonnes of soybeans from the US earlier this month. Cao Zumin, president of the China Chamber of Commerce for imports and exports of foodstuff had said then that bird flu would not further reduce demand for soy- based chickenfeed as it would no longer be a concern in China.

 

US, Argentina and Brazil supply China with more than half its annual soy requirements. China has been shifting orders from US, its main supplier, to South America this year, Nie said.

 

China, the primary market for Brazilian soy, granted a 5-year licence for the import of genetically modified beans from the country in March.

 

China's wheat imports plunged 86 percent to 94,459 tonnes last month, according to customs data. Imports were 141,735 tonnes in the January-March period, down 93 percent from a year earlier

 

Corn exports fell 30 percent to 771,717 tonnes in March.