China may slow down soy imports in 2008-09

China's soy import will continue to grow in crop year 2008-09, but at a slower pace compared to the previous year due to the increase of domestic soy reserves, according to the China National Grain and Oils Information Centre (CNGOIC).

China's soy import in 2008-09 crop year will increase 0.5 percent on-year to 38 million tonnes, said CNGOIC.

Traders said the government was likely put some reserves into the market this year, which was expected to pressurise import growth.

Traders also expect China's soy import to fall to 3.1 million tonnes this month as processing plants would suspend production toward the Spring Festival.

The last customs data showed that China imported 37.44 million tonnes of soy in 2008, up 21.5 percent over the previous year. A CNGOIC analyst said the significant increase was mainly due to the lower price of foreign soy and the sharp fall of freight cost.

China's December soy import also rose 12.8 percent on-year to 3.3 million tonnes.