August 14, 2014

China: 2013/14 soy imports to set a record

The world's top importer of soybean, China, will see imports surge 17% in the marketing year ending September to a record high of 70 million tonnes, Reuters reports.

The forecast by the China National Grain and Oils Information Centre is higher than an estimate of 69 million tonnes by the United States Department of Agriculture (USDA) for the current year.

"The large increase in imports is being driven by sustainably strong domestic demand. Crushing capacity and volumes have been increasing constantly," the centre said in a report.

The use of soy imports as collateral in financing deals has also boosted shipments, it said.

China's stockpiling of domestic soybeans has kept local soy prices high above imported prices, leading more local crushers to shift to cheaper imports.

China is set to scrap soy stockpiling in 2014, however.