May 8, 2012

China's agricultural imports seen slower on lesser demand

The major commodities imports of China possibly declined in April, as softer macroeconomic situations and high inventory levels lessened buying appetite, analysts said Friday (May 4).

Customs officials are expected to release preliminary trade data for April next Thursday.

The appetite for imports in the world's biggest buyer of many commodities is a proxy for its industrial health.

Agricultural imports are likely to show stronger demand.

Chinese corn imports likely surged, as traders say Beijing's official stockpilers have been in the market for as much as four million tonnes of the grain.

Imports in the first quarter rose more than 300 times on year, and Phillip Futures said in a note that "the latest wave of buying was further evidence that Beijing would step into the market on price dips to bolster its grain supply."

Soy imports in April are likely to stay at elevated levels of around 4.63 million tonnes as feed mills snap up shipments for soymeal, the state-backed China National Grain and Oils Information Center said in mid-April.

March soy imports totalled 4.8 million tonnes.