August 12, 2013

China's soy imports hit record high in July

China's soy imports reached 7.2 million tonnes in July, a record high for a second straight month, as delayed Brazilian shipments arrived and importers replenished stocks.

Imports by the world's top soy buyer are expected to stay strong as animal feed companies boost output ahead of winter. With first-half arrivals hit by port congestion in Brazil, China will catch up in the second half of the year, analysts said.

China shipped in 22.7% more of the oilseed than the 5.87 million tonnes a year ago, data from the General Administration of Customs showed on Thursday (Aug 8). "This is quite normal," said Guan Xiangfeng, analyst at Shanghai CIFCO Futures. "Our March and April imports were quite low so this led to the staggering June and July imports."

For the first seven months of the year, total imports came to 34.69 million tonnes, almost on a par with the 34.92 million tonnes imported at the same time a year ago, the customs data showed. Arrivals are expected to remain ahead of last year in August, with official think-tank China National Grain and Oils Information Centre (CNGOIC) projecting shipments of 6.04 million tonnes, up 36.6% from a year ago.

Higher imports will further weigh on soyoil futures on the Dalian Commodity Exchange, which have already fallen below RMB7,000 (US$1,100) per tonne, their lowest level since 2006. Analysts expect total 2012-13 soy arrivals to be steady near last year's level at around 60 million tonnes, before increasing in the marketing year to September 2014. CNGOIC said in May that China will import a record 66 million tonnes in 2013-14 due to robust domestic demand and low stocks.