June 7, 2005

China set for record 2004/2005 soybean imports

China, the world's top soybean importer, seems likely to import a record volume of 24.5 to 25 million tonnes of soybeans in the 2004/2005 season if imports during August and September are kept at two million tonnes a month.

Cao Zhi, vice director at the China National Grains & Oils Information Centre (CNGOIC) said that the country's feed production is expected to recover in July and August, driving the strong demand for soymeal.

From September 2004 through April 2005, China imported a record 12 million tonnes of soybeans from the US. Imports from South America between March and August 2005 were expected to reach a similar level, he said. The high soybean imports will help offset a lower domestic harvest, as farmers switch to more profitable grains.

China's domestic soybean harvest is expected to fall to 17.3 million tonnes in 2005, down from 18 million last year, after soy acreage fell 2 percent.