China soymeal exports may rise on high stocks, slowing demand

China, the world's largest soy importer, imported 3.52 million tonnes of soy in May, according to data from the General Administration of Customs.

In the January-May period the country imported 17.38 million tonnes of soy – 27-percent more than in the first five months of last year.

"Domestic demand for animal feed is not good and soy imports have risen to unprecedented levels in recent months. It comes as no surprise to see crushers moving to increase exports to try and reduce stockpiles," said a senior Shanghai-based commodities analyst.

Soymeal exports in the May-August period could reach 650,000-700,000 tonnes, compared with around 200,000 tonnes in the same period last year, she said.

Concerns over the AH1N1 flu virus prompted a sharp increase in the slaughter of pigs, and the resulting decline in animal feed demand has led to storage constraints that will likely encourage crushers to increase exports in the weeks and months ahead, said a trader with Shanghai-based commodities trading firm.

Normally, soymeal can only be stored for around three months, and the hot summer months make storage even more problematic, he said.