China to slash soy imports in Aug-September

 

 

China may cut its purchases of expensive old crop soy and instead use up stocks and focus buying on cheaper new crop deliveries in coming weeks, Hamburg-based oilseeds analysts Oil World forecast on Tuesday (July 7).

 

A very sharp decline in Chinese soy imports is expected in August and September 2009 due to very high prices in the world market, it said.

 

China is the world's largest oilseeds importer and has been the driving force behind strong global soy import demand recently, it said. In June, Oil World also warned a reduction in Chinese soy imports was looming.

 

The firm said that a a significant slowdown in Chinese soy imports in Aug and Sept 2009 will have a bearish impact on old crop soy prices.

 

China is believed to have bought 700,000 tonnes of soy last week for new crop delivery positions, Oil World said.

 

If the trend continues the high price premium of old crop US soy futures against new crop contracts could weaken, it said.