November 28, 2007

Oil World sees more soy buying from China

US-based oilseeds analyst, Oil World, projects a continuous increase in the soy purchases of China.

China's government recently encouraged the import of oilseed and vegetable oil to reduce rising domestic prices. However, this goal has not been fully attained.

Oil World predicts additional large-scale purchases in the near to medium term.

It forecasts China's August 2007/July 2008 soybean imports to increase by 34 million tonnes from 28.72 million tonnes in 2006/07 due to the country's poor crop and high domestic demand.

China's 2007/08 soy crushing is forecast to rise to 36.80 million tonnes from 34.80 million tonnes in 2006/07.

Higher domestic demand for soyoil and meal and insufficient crushings of other oilseeds are likely to result in an increase in Chinese soybean crushings by at least two million tonnes.

Meanwhile, the slow South American soy exports in December 2007/February 2008 will lead to rising US soybean exports, Oil World adds.