August 21, 2008

 

China's soy imports for August lower than expected
    

 

China, the world's largest soy buyer, expects 3.37 million tonnes of imported soy in August, the Ministry of Commerce said on Wednesday (August 20, 2008).

 

The figure was below an earlier estimate by traders of about 4 million tonnes.

 

The ministry also said 170,000 tonnes of soyoil and 320,000 tonnes of palmoil are expected to arrive during the month. 

 

Starting this month, importers are to report their cargoes of imports for these commodities. The ministry requires the report within three days after signing contracts, with the cargoes' shipment and arrival dates included.

 

Buyers also reported 2.48 million tonnes of imported soy due to arrive in September and 785,600 tonnes in October.

 

Crushers have slowed imports due to poor crushing margins as earlier shipments were bought at high prices, while current soyoil and meal prices were weak.

 

China's major cooking oil producers have cut down soyoil prices in response to the international market situation.

 

The latest data show prices of cooking oil products in Beijing, Shanghai, Guangzhou and Shenzhen have slumped at least ten percent since early August.

 

Analysts say tumbling crude price on the international market will further press cooking oil price downward in the near future.

 

Other factors include the rebound of the US dollar and ideal weather conditions for soy growth in America and Brazil.

 

Soyoil arrivals were at 213,991 tonnes for September and 17,500 tonnes for October.

 

The ministry received no reports on imports of rapeseed oil and rapeseed from August to October, while soymeal imports were only 2,000 tonnes for August.

 

The ministry publishes the data twice a month.

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