May 30, 2012
Oil World sees increase in China's soy imports
In the 2011/2012 season, China may lift soy imports despite recent cancellations of cargoes due to a small soy crop and constant high demand, projected oilseeds analysts Oil World on Tuesday (May 29).
China is likely to import 56.8 million tonnes of soy in October 2011/September 2012 against 52.3 million tonnes in 2010/11, Oil World said.
"With the recent purchases and vessel lineups this quantity may actually turn out on the low side," it said. "Additional sizeable increases in imports will be required next season in view of the prospective further decline in Chinese oilseed production under the lead of soy and rising domestic requirements."
China's own 2011/12 soy crop fell to 13.6 million tonnes from 15.08 million tonnes in the previous year, it said.
Global markets were surprised on May 24 when a Chinese trading house cancelled four soy shipments, generating concern about possible falling demand from China, the world's largest soy buyer.
Oil World stressed such shipments were bought at previously high soy prices which have since fallen back.
"Of course China needs these quantities but is going to buy them at lower prices," it said.
