May 20, 2011

China's May, June soy imports estimated at 4.5 million tonnes each

China's soy imports in May and June may reach around 4.5 million tonnes each month, the China National Grains and Oils Information Centre (CNGOIC) said Thursday (May 19).

This would suggest that supply pressures will continue to weigh on domestic prices, adding to the negative effects of macroeconomic and policy concerns, perceptions of a drop in demand and a softening of global commodity markets.

If realised, imports of 4.5 million tonnes in May would be up 16% from the previous month and 3% from a year earlier. The CNGOIC's forecast is in line with a Ministry of Commerce estimate issued two weeks earlier.

"Domestic soy supply is already sufficient...(and) South American soy coming on the market creates (more) pressure, though uncertainty in US soy planting is supporting prices," the CNGOIC said.

The Harbin National Grains and Oils Trade Centre will sell 34,300 tonnes of 2008 soy stocks on Friday. The centre, a branch of the CNGOIC in Heilongjiang province, has conducted 23 auctions since December last year, 13 of which did not attract any bids, the CNGOIC said.