September 10, 2012

 

 

China has increased rapeseed imports to cope with soy shortages expected in the coming months as US supplies continue to be affected by an on-going drought crisis.

 

Rapeseed imports in the fourth quarter of the year will surge 86% from the year-ago period to 1.1 million tonnes, said the China National Grain and Oils Information Centre.

 

China imported 1.75 million tonnes of rapeseed in the first seven months of the year, almost all from Canada, the world's largest exporter of rapeseed, also called canola.

 

Traders had expected China's imports to reach close to a record of more than three million tonnes this year in the wake of damage to domestic crops and expanded crushing capacity.

 

The centre expected imports in October were between 450,000 and 500,000 tonnes and at 350,000 tonnes for November.

 

Orders of new Canadian canola since July have slowed after rising canola prices offered no margins for crushers, the centre said.

 

China imported its largest volume of Canadian canola in three years during the year to July 2012, despite trade curbs.

 

The rising rapeseed imports would help cover shortages of meal, an ingredient of animal feed, after the most severe drought in decades in the US, the top exporter, cut supplies to China.

 

Analysts expected China to import nearly 40% less soy in the fourth quarter of the year than the corresponding period a year ago.

 

The Chinese government has stockpiled 3.71 million tonnes of rapeseed for state reserves by the end of August from this year's summer harvest, which was 12.92 million tonnes, an increase of 3.7%.