Soy imports into China rises upwardly

 

 

China's soy imports rose by 15%, reaching 2.89 million tonnes in November despite delays in US shipments.

 

Traders had initially anticipated imports above three million tonnes, but wet weather in the US, the world's largest soy exporter, was the result of delayed loadings of cargoes headed to China.

 

The tight supply of the oilseed has helped drive up prices of soy in the country, in part also due to a seasonal pick-up ahead of traditional holidays.

 

But Chinese ports have seen large amounts of arrivals from the US since late last month and analysts expect imports this month may hit a record 4.8 million tonnes.

 

Better crushing margins also prompted many to try to bring in cargoes as early as possible.

 

"We were surprised that domestic buyers are still buying (expensive) US soy. We think it is because of a reduction of soy imports and domestic oilseeds output," said one trader with an international trading house.

 

China's soy imports in the whole year of 2009 were forecast to rise 13.5% from last year to a record 42.48 million tonnes, according to estimates by the China National Grain & Oils Information Center (CNGOIC).

 

Imports in 2009-10 could exceed 20 million tonnes, up 11% from last year, traders estimated.

 

China has already booked 17.57 million tonnes of soy from the US, the world's largest exporter. Chinese buyers were now buying largely cheap South American crops for shipment after March, though many have slowed down amid large imports in coming months.

 

China's own production of cottonseed meal as well as peanut meal could decline by more than 10%, respectively, and the lower output has given more market share to soy, used also as an animal feed protein ingredient. China's own soy output was also seen falling 6.7% this year.

 

Imports of soyoil in the first quarter of next year will only total 170,000 tonnes, far below the 400,000 tonnes seen for November and December, said the CNGOIC.

 

China imported 7.45 million tonnes of edible oils in the first 11 month, a rise of 9.1%. Imports in November were 680,000 tonnes. The rise in palmoil imports contributed to the growth. Soyoil imports in the first 10 months fell 4.3% from a year earlier.