June 5, 2010

China's soy surplus prompts import cancellation

Soy surplus in China due to high imports has resulted in local traders canceling more than 10 shipments of the crop from Argentina and Brazil since May, said industry participants Friday (Jun 4).

Some cargoes of imported soy are locked at Chinese ports, waiting to be loaded, they said.

New soy arrivals at several ports in Shandong province haven't been loaded yet since stock levels are full, said China National Grain and Oils Information Centre, adding it expects soy imports to exceed 6 million tonnes in June.

Crushers of imported soy are losing US$10-$40/tonne and it is impossible for them to cancel the cargoes since most of them are already on their way to China, according to sources.