June 10, 2010

 

 

China buyers have cancelled five to eight South American cargoes scheduled to ship in June and July due to negative crushing margins, said the National Grain and Oils Information Center (CNGOIC).

 

Importers have also delayed loadings of five to seven cargoes scheduled for the period to August, said one official. One cargo carries about 50,000 tonnes to 55,000 tonnes.

 

Poor crushing margins could reduce China's needs for near-month cargoes and pressure the CBOT soy prices. Chicago prices climbed 1.3% on Wednesday (June 9) supported by China, which has bought 240,000 tonnes for the 2010/2011 marketing year.

 

Competitive South American soy prices have led China to overbook cargoes from Brazil and Argentina. Large arrivals since late last month have swamped ports and filled their storage to capacity.

 

Domestic soymeal prices have also been under pressure from large soy arrivals. Meal prices offered by crushers at Zhangjiagang, a major soy port in the east, fell 11% over the past month.

 

China's soy imports in June were seen rising to their highest monthly levels of between 6.2-6.3 million tonnes while imports in July were seen at 5-5.2 million tonnes.

 

China imported 4.37 million tonnes of soy in May, up 4.3% from 4.19 million tonnes in April, according to the official figures released by the General Administration of Customs.

 

China's soy imports have also been revised in 2009/2010 to a record 48 million tonnes, up from 41.1 million tonnes in the previous year.