September 29, 2004

Chinese Soy Crushers Signed Deals to Import 2.25 Million MT US Soybeans
 

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According to trade sources, Chinese soy crushers have signed deals to import 2.25 MMT U.S soybeans for the 2004-05 marketing year (October 2004 to September 2005). 

Chinese crushers' serious defaults on contracts early this year remain an obstacle to full-scale resumption of U.S soybean supply to the Chinese market in the short term. U.S soybean shipments due to reach Chinese ports in the fourth quarter are expected to remain low as a result.

In addition to imports of South American soybeans, China's total soybean imports in the fourth quarter are projected at the low level of 2.5-3.0 MMT, compared with imports of 3.03 MMT during the same period in 2003.

Based on the estimates by China National Grains and Oils' Market Surveying and Tracking Division, the country's oil-grade soybean demand in the fourth quarter this year are pegged at 5.3-5.8 MMT. The shortfall in supply would be made up by locally produced soybeans.