China Aug soy imports down 18 percent on-year

 

 

China's soy imports in August fell 18 percent from a year ago to 3.13 million tonnes, the General Administration of Customs said Tuesday.

 

In the year to August, soy imports rose 21 percent to 29.6 million tonnes. In the same period last year, China imported 24.6 million tonnes, marking an increase of 24 percent.

 

The decline in August contrasts with China's intake of 4.39 million tonnes in July, an increase of 25 percent from a year ago.

 

In August last year, China imported 3.83 million tonnes of soy, up 31 percent.

 

The declining trend, particularly for soy demand in the months ahead, isn't expected to change, given ample reserve stocks and rising global prices.

 

China is expected to import only 1.8 million tonnes of soy in October, the lowest since February 2007 and sharply lower than the 2.8 million tonnes projected for September, according to estimates provided last week by the China National Grain and Oils Information Centre.

 

Imports may, however, pick up after October, with estimates for November rising to 3.5 million tonnes, the government think-tank said.

 

Market participants had widely expected that the government would start releasing state soy reserves around this time of year, and planned import orders accordingly, analysts said. The ongoing government reserve sales that began in late July dulled the appetite for imported soy in August, they said.

 

China is the world's biggest importer of soy and gets most of its supplies from the US, Brazil and Argentina, the world's leading soy producers.