September 18, 2015

 

China expected to buy 27 million tonnes of US soybeans during 2015/16
 

 

During Chinese President Xi Jinping's visit to the US next week, China is likely to sign deals amounting to "several million" tonnes of soybeans during a ceremony on September 24 in the state of Iowa, according to a source attached to the visiting delegation.

 

Personnel from more than 20 Chinese companies, including food processors COFCO, Sinograin and the Heilongjiang Jiusan Group as well as Sunrise Group, will be part of the entourage.

 

An overall volume of 27 million tonnes of US soybeans is expected to be bought by China during the 2015/16 marketing year, a drop from 29.6 million tonnes in the last season, said the China National Grain and Oils Information Centre (CNGOIC), an official think tank.

 

In addition, total Chinese soy imports could increase by only one million tonnes to 78 million tonnes during the 2015/16 season, with CNGOIC attributing the modest growth to China's economic inertia.

 

Meanwhile, US soy exporters are also coping with their slowest sales for new crops in seven years as shipments from the States are hampered by competing South American supplies and a strong dollar.

 

More than 60% of soybeans traded worldwide have been acquired by China and are used to produce soy oil for food processing and soymeal for livestock feeds.

 

During Xi's visit to the US in 2012, a deal for more than 12 million tonnes of soybeans was signed by the Chinese delegation.

 

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