July 27, 2011

China is likely to start importing more soy and vegetable oils from July after weak purchases in past months, Hamburg-based oilseeds analysts Oil World forecast Tuesday (Jul 26).

Oil World estimates China will import 5.2-5.3 million tonnes of soy in July, up from 4.3 million tonnes in June and 4.95 million tonnes in July 2010.

"Imports of soy, palm oil and soyoil are likely to increase from a year earlier in July/Dec 2011, reversing declines registered in recent months," Oil World said.

China may further relax curbs on domestic edible oil prices which could help generate more imports, Oil World said.

China's price curbs and sales of oilseeds and edible oils from its stocks in the first half of this year were aimed at reducing inflation but the stock sales also reduced import demand.

"Imports of soyoil are seen increasing to a combined 400,000 to 430,000 tonnes in July and August compared with 339,000 tonnes in the same two months of last year," it said, adding that virtually all are expected to come from Brazil and Argentina.