July 14, 2011

COFCO: China's 2011-12 soy imports to grow 10%

China's soy imports in the 2011-12 crushing year are likely to regain upward momentum, rising nearly 10% from a year earlier, after an expected mild increase in 2010-11, a COFCO official said Thursday (Jul 14).

Soy imports were expected to rise 8.7-9.7% on-year to 56.1-56.6 million tonnes in the crushing year starting October, said Zhang Jinjun, a deputy general manager with the oil and oilseeds department under state-owned China National Cereals, Oils and Foodstuffs Corp (COFCO).

Soy imports in the 2010-11 crushing year were expected to total 51.6 million tonnes, up 2.5% because of weak crushing margins, sluggish feedmeal demand from pig farmers and government sales of rapeseed oil, he said.

Crushers of imported soy were expected to run at less than 50% capacity this year, lower than last year's 55-60%, because of crushing losses, said Zhang.

Total vegetable oil imports in 2011-12 were estimated at 8.7 million tonnes, up from the 8.1 million tonnes seen for 2010-11, Zhang added.

He also estimated rapeseed output this year at below nine million tonnes, much lower than the China National Grain and Oils Information Centre's forecast for 12.8 million tonnes.