June 29, 2012

 

Oil World projects Chinese soy imports at almost 58 million tonnes

 

 

In the October 2011/September 2012 season, China may import 57.9 million tonnes of soy, 5.6 million tonnes higher on-year as its oilseeds demand remains to rise, Hamburg-based oilseeds analysts Oil World said on Tuesday (June 26).

 

This is up by one million tonnes on Oil World's previous import estimate in May.

 

"We have raised our estimates of Chinese oilseed imports and crushings, taking into account larger than expected shipments and purchases in the latest two months," Oil World said.

 

China's May 2012 soy imports rose 15.6% on the year to 5.2 million tonnes.

 

Oil World now estimates China's soy imports in April/September this year will reach 29.71 million tonnes from 26.74 million tonnes in the same time in 2011.

 

"China has been a very active buyer of oilseeds in recent weeks," it said.

 

The reasons were to raise supplies available to China's crushing industry as demand continues and to compensate for China's reduced soy crop, it said.

 

There is also a desire in China to keep soy stocks sufficiently large in case weather damages the upcoming US soy crop and also to guard against any temporary interruptions in South American exports such as from recent strikes, it said.

 

"Insufficient domestic production is raising Chinese import requirements of oilseeds and vegetable oils," it said.

 

China is likely to consume 11.28 million tonnes of soyoil in the 2011/12 season, up from 10.88 million tonnes in 2010/11, Oil World estimates.

 

But China's 2011/12 soyoil output will remain below consumption at 10.10 million tonnes, despite a rise from 9.49 million tonnes in 2010/11, it said.