April 14, 2015

 

China stocks up on cheap soy from South America

 

 

Despite slowing demand, soy imports in China accelerated in March as the world's top buyer of the oilseed took advantage of cheaper supplies from South America.

 

A Reuters news report said soy imports during the past month rose to 4.49 million tonnes, or 5.4% more than those of the previous month's 4.26 million tonnes.

 

In the first quarter imports rose 1.9% to 15.63 million tonnes, according to the General Administration of Customs.

 

Imports fell in mid-February but picked up in March after the Chinese New Year holiday, although demand declined in some regions.

  

"Demand is actually pretty bad; in many places feed demand in the first two months declined," Monica Tu, analyst at Shanghai JC Intelligence, was quoted as saying.

 

However, Chinese traders imported more soybeans in the first quarter to take advantage of low prices, she added.

 

The China National Grain and Oils Information Center expects soy imports to further increase in April to 5.3 million tonnes and in May and June to 6.5 million tonnes per month.

 

The CNGOIC said imports would be coming from South America, which offers processors better crushing margins.

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