May 11, 2009

China, the world's top soy purchaser, is likely to import a record 39.5 million tonnes of soy up till September this year, an on-year increase of 4.4 percent or 1.68 million tonnes, according to the China National Grain and Oils Information Centre (CNGOIC) on Friday (May 8).

 

The centre revised up its forecast of imports following aggressive procurements by Chinese buyers in recent months after Beijing's stockpiling of the domestic crop led to more purchase of overseas soy.

 

Imports in the first half of the marketing year have grew 11 percent compared to the same period last year and full-year imports are expected to be larger than earlier estimates, said an analyst at the centre.

 

Traders have said they expect China's soy imports in May to hit a record five million tonnes, while June imports will be more than four million tonnes. However, imports are likely to slow down after June due to large arrivals and softening soymeal prices.

 

Meanwhile, the centre also forecasted domestic soy production this year to fall by 3.2 percent from last year as farmers planned to plant more corn.