April 28, 2012

 

China's 2012 rapeseed imports may top two million tonnes

 

 

The 2012 rapeseed and rapeseed oil imports of China will possibly soar on strong demand and a foreseen decline in domestic output, the state-backed China National Grain & Oils Information Center reported Thursday (Apr 26).

 

However, local rapeseed oil supplies will remain tight in 2012 despite higher imports, as domestic rapeseed production may fall below last year's 13 million tonnes due to reduced acreage, with farmers opting to plant grains, which are more lucrative.

Domestic rapeseed oil prices will likely rise further and hover at firm levels, CNGOIC said in the report.

 

The country's annual rapeseed oil demand is around 5.2 million tonnes.

 

The centre said 2012 rapeseed oil imports will likely surge to one million tonnes from 550,904 tonnes last year.

 

Rapeseed imports may exceed 2 million tonnes this year, compared with 1.26 million tonnes in 2011, as the country's quality regulator has allowed more crushers to import, it added.

 

The country sources most of its rapeseed needs from Canada.

 

In a separate report, Sun Zhou, deputy general manager of Cofco Group's edible oil department, said domestic oilseed output is expected to grow just 2% annually over the next five years, while edible oil demand will likely rise 3-5%.

 

Cofco Group is China's largest rapeseed crusher and its second-largest soy crusher.

 

Sun said the country's dependence on imports for oilseeds and edible oil will rise to 80% in 5-10 years from 74.7% now.

 

China's annual vegoil demand is estimated around 27 million tonnes.

 

Benchmark September rapeseed oil futures on the Zhengzhou Commodity Exchange closed up 0.8% at RMB10,692/tonne (US$1,693) Thursday, making it the best performer among agricultural commodities, amid speculation that the government will hike its rapeseed purchase price to around RMB5,000/tonne (US$792) this year from RMB4,600/tonne (US$728.52) last year.

 

The CNGOIC expects the country's annual rapeseed imports to increase to 2-3 million tonnes over the next few years, and exceed three million tonnes if the government allows imports from former Soviet Union countries.

 

China allows imports of rapeseed for crushing only from Canada, Australia and Mongolia, according to the General Administration of Quality