China's soy imports take an upturn

China, the world's largest soy buyer, imported 4.2 million tonnes of soy in April, up nearly 5% from March, while May imports rose further thanks to better demand from livestock breeders.

 

Soy imports in the first four months rose 9.9% to 15.23 million tonnes, according to figures released on Monday (May 10) by China's General Administration of Customs.

 

Loading delays in Brazil, coupled with better demand, have caused many cargoes to be pushed back to late May or June arrival, said analyst Gao Chunlai.

 

"China bought a lot from South America due to strong demand. Feed production is likely to pick up in the second quarter from the seasonal low in the first quarter," said Gao.

 

Some feedmills were using more soymeal instead of cottonseed meal and rapeseed meal. Feedmills in Shandong in the north have increased use of soymeal by 10%. Both types of meal, rich in protein, are feed ingredients.

 

The China National Grain and Oils Information Centre expected soy imports in May and June to hit a record level of more than five million tonnes each month.

 

Increasing numbers of crushers were selling their soymeal several months in advance to lock in profits.

 

Beijing's stockpiles of frozen pork have aided domestic pork prices and encouraged restocking by farmers as well.

 

China's own soy planting acreage in the northeast could fall this year from last year because of better returns from growing corn. But final acreage will depend on weather conditions in the area as farmers may shift to soy instead of corn if lower temperatures than usual delay corn planting too long.

 

China's soy imports in 2009-2010 (October-September) will hit a record 44 million tonnes, a rise of 7.3% from the previous year, according to the forecast by the centre.

 

Chinese soy plants could crush more of the soy to make up for a shortfall in soyoil imports from Argentina, the world's largest exporter, after Beijing restricted imports over a trade dispute.