July 20, 2010

China to cut back on US soy imports

Chinese dealers will slow down the purchase of new soy from the US as some soy processors have halted production due to higher US prices and declining crush profits, said China National Grain and Oils centre (CNGOIC) last Friday (Jul 16).

This would lead to decreasing import in the coming months from July to September, the centre predicted.

Soyoil prices in the domestic market climbed last week (from July 11 to 16) but were still lower than global prices, leaving room for further price rises. But the price will not rise by a big margin due to abundant supply, the centre said.

With mounting inventory and thin profits, oil processors are unlikely to increase purchases in the short term.