December 4, 2012

China's soy output is expected to reach 12.8 million tonnes in 2012, a decline of 11.6% from 2011.

As China focuses on boosting output of corn, wheat and rice, it has become increasingly dependent on foreign soy supplies, and now buys 60% of globally traded soy. Imports are expected to reach a record 57.5 million tonnes this year.

China's total soy planting area fell 9% this year to 7.177 million hectares, the National Bureau of Statistics (NBS) said.

The think tank, the China National Grain and Oils Information Centre (CNGOIC) said the figure was higher than expectations, with some researchers estimating an overall decline of 25%.

Domestic soy crushers continue to make losses, with crushing margins negative for the eighth straight week this week, but the situation is improving, the think tank said.

Chinese crushers have been buying more foreign soy cargoes in the last few weeks as they lock in supplies ahead of the peak consumption season before the Chinese New Year festivities in February.