November 9, 2010

China needs more soy imports for edible oil use

China's edible oil market is likely to depend more on import raw materials, an analyst has warned at the International Oils and Oilseeds Conference that kicked off over the weekend.

China's soy imports have been projected to hit a record 52 million tonnes in the fiscal year of 2010/2011, and that amount will make up 78% of the nation's additional supply of the crop during the year.

Of the 90 major soyoil processors, 70% are linked to foreign capital. "China is expected to consume over 27.4 million tonnes of edible oil in 2010/2011, of which soyoil will represent 40%, palm oil 24% and rapeseed oil 16%," said general manager of the Dalian Commodities Exchange.

"All this stoked China's increasing dependence on soy imports." The Dalian exchange registered 450 million transactions of soy-backed oil products valued at RMB23.6 trillion (US$3.53 trillion) in the 10 months through October 2010, he added.