November 11, 2010

China's October soy imports drop to 3.73 million tonnes

China imported 3.73 million tonnes of soy in October, the lowest since March and down 19.6% from September, official customs figures showed on Wednesday (Nov 10).

The low figure was partly due to customs clearance delays during the week-long National Day holidays, said one analyst with the China National Grain and Oils Information Centre (CNGOIC).

Some of October's cargoes could be calculated as part of November, when the centre expects imports will top more than 5.2 million tonnes. Imports in December are also likely to exceed five million tonnes, the analyst said.

Imports in the first 10 months rose 25.8% to 43.9 million tonnes, said the General Administration of Customs of China.

"Chinese buyers have not slowed down imports, partly because of strong demand, and some are also worrying over even higher prices later," said one industry analyst, adding crushing margins remain positive despite the rise in Chicago prices on Tuesday.

US soy futures surged 4% to a 26-month peak as the US government unexpectedly cut its yield output and strong Chinese demand has helped drive up prices.

The USDA has also revised upward China's soy imports in 2010/2011 by two million tonnes to 57 million tonnes.