Japan's soy imports expected to take an upturn

Soy imports by Japan, the largest Asian buyer after China, may increase 1.5% this year after reaching a 34-year low in 2009, according to an industry group.

Imports may advance to 3.44 million tonnes from 3.39 million tonnes last year, the Japan Oil & Fat Importers & Exporters Association said in a statement. The volume in 2009 was the smallest since 1975, when Japan imported 3.33 million tonnes for crushing and food production, data from the association show.

The price of soy has declined 9.7% this year, reversing last year's 7% gain, on forecasts of record production in Brazil and Argentina, the biggest exporters after the US Futures in Chicago touched US$9.275 a bushel on May 25, the lowest level for a most-active contract since March 15.

"We expect Japanese imports will stop declining this year," Kiyozumi Fukao, executive director of the association said. "Domestic feed production is holding steady and the use of soymeal in feed is increasing."

Soy is crushed to produce cooking oil and soymeal, a source of protein for animals. Japan's soy imports reached a peak of 5.17 million tonnes in 2003.

Japan's purchase of rapeseed may rise to 2.1 million tonnes this year from 2.07 million in 2009, the association forecast. Imports of palm oil, including oil from palm kernel, may increase to 601,000 tonnes from 594,446 tonnes, it said. Palm oil is a cheaper alternative to soyoil and rapeseed oil in Japan.