September 15, 2006

China to account for half of US soy exports this year

US soy exports are off to a good start for 2006-07 as export sales of 5.1 million tonnes as of August 24, were 75 percent higher than last year's 2.9 million tonnes, largely due to record sales to China.

China is expected to account for nearly half of 2006-07 US soy exports. Much of the export deals were made when Chinese officials visited the US earlier this year.

Meanwhile, sales to other Asian destinations remain similar to that of the last 2 years.

EU's increased reliance on rapeseed crush to supply its expanding biodiesel industry has led to more demand for soymeal as the animal feed market switched from rapeseed to soymeal. This has led to increased imports of US soymeal while US soy imports into the EU remained virtually non-existent.

Weaker Argentine shipments to China this fall is expected to lend strength to US export prospects. The US likely would face weaker South American competition as Brazilian stocks are smaller than a year ago and Argentine soy exports is expected to fall due to a large increase in crush.