November 4, 2013

China's soy harvest declines due to flooding

China's soy harvest was damaged due to flooding in the north-eastern province of Heilongjiang, giving added impulse to soaring soy imports.

China's soy harvest will now fall short of 12 million tonnes, while 2012 imports are likely to reach nearly 60 million tonnes. Import forecasts for the 2012-13 crop year were already at the 65-67 million tonnes-level, based on China's ever-increasing demand for sources of animal protein.

With the flood damage to the 2012 crop, imports have the potential to reach 70 million tonnes. The government has also been selling stock from its soy reserve, but market observers say the relatively low quality of the stored soy has limited those sales.