June 12, 2008

China soy imports jump 20.4 percent despite higher prices

China's soy imports during the first five months of this year jumped 20.4 percent to 13.65 million tonnes compared to the same period last year, official customs data showed on Wednesday (June 11, 2008).

The office said on its Web site the average import price for soy in the first five months was US$580.3 a tonne, up 77.9 percent on-year.

The office gave no May breakdown in its first data for May but estimates put May soy imports at 3.48 million tonnes, up 45.6 percent from 2.39 million tonnes in April and 17.6 percent from the same period last year. This would be the second highest monthly import ever.

Imports were encouraged by record domestic soyoil prices early this year and anticipation of higher demand for soymeal from the pig breeding industry.

"Imports will remain strong in June and July. We see each month at more than 3 million tonnes. Buyers had booked many cheap South American beans earlier," said Zhang Liwei, an analyst with the China National Grain and Oils Information Centre.

The strong imports will continue to pressure domestic prices of soyoil, which has fallen more than 30 percent since March. Cooking oil prices have earlier helped drive the country's inflation to a decade-high level, prompting Beijing to release reserves to control price rises.

Edible oil imports were seen to decrease in coming months as buyers have cancelled some cargoes after the drop in domestic cash prices outpaced a drop in the price of imported oils.

China's edible oil imports in May, at 660,000 tonnes, has dropped 27.5 percent compared to April.

Imports in the first five months rose 11.1 percent to 3.22 million tonnes, according to Customs figures.

China, the world's largest consumer of edible oils, mainly imports soyoil and palmoil.