October 14, 2010

China turns to domestic soy; September imports fall

Soy imports by China, the world's biggest buyer, declined for a third month in September as buyers boosted purchases of domestic beans, according to data from the Beijing-based customs agency.

Imports were 4.64 million tonnes, customs said in a statement. August shipments were 4.77 million tonnes, while purchases in June were a record 6.2 million tonnes. Monthly imports normally decline as China's domestic harvest comes onto the market, said analyst Chen Baomin of Jilin Grain Group Co.

China's soy imports for 2009-2010 marketing year ended September 30 were 50.4 million tonnes. Monthly imports will still likely average more than 4.5 million in the year started October 1, Chen said.

"Crushers in northern China usually scale back imports during this time of year as they switch to domestic beans, but this is still a relatively large number," Chen said. "Crushers in the south will continue to import."

China may import 55 million tonnes of soy in the 2010-2011 marketing year, a gain of 8.9% from the previous year, the USDA forecast October 8. Inbound shipments in 2009-2010 grew 23% from the previous year, the USDA's data show.

Fourth-quarter imports by China may rise by 3.6 million tonnes from a year ago to 13.8 million tonnes, the China National Grain & Oils Information Centre said. Crushers are actively seeking shipments between March and July, spurred by rising profits, it said.