May 18, 2009
China to slow soy imports amid abundant supplies
China's demand for imported soy will likely slow down amid ample supplies and heavy imports in coming months, according to a survey by the China National Grain and Oils Information Centre (CNGOIC).
However, with domestic soyoil prices reaching the highest level of the year last week, it has spurred end-users to build up their inventories in anticipation of even higher prices due to the arrival of expensive soy into China.
Despite crushers operating at a high capacity, which would boost soymeal supplies and cause a rise in soymeal prices, China's soymeal market stayed bearish instead as the expensive imported soy pushed down soymeal prices. Additionally, poor returns for livestock breeders could push demand for soymeal below normal levels.
