October 17, 2003
China 2002-03 Soybean Imports More Than Double To 21.41Million MT
China's soybean imports surged to 21.41 million metric tons in the October 2002 to September 2003 marketing year, beating industry estimates, local traders and analysts in China said Friday.
The imports are more than double the 10.39 million tons imported in the 2001-02 marketing year, traders said.
By comparison, the U.S. Department of Agriculture in early October forecast China's soybean imports in 2002-03 at 20.33 million tons.
The semi-official China National Grain & Oils Information Center put imports in 2002-03 at 20 million tons, said traders.
China's soybean imports from January to September 2003 reached 17.71 million tons, according to the China Securities newspaper, a subsidiary of the official Xinhua news agency. The newspaper cited official Chinese customs data.
In the fourth quarter of 2002, China's soybean imports totaled 3,704,487 tons, according to customs data.
For the 2003-04 marketing year, China's soybean imports are expected to reach 22 million tons, traders said. This compares with 20.50 million tons projected by the USDA in early October.
China's booming soybean crushing industry is the reason for the surge in soybean imports.
Local Production Can't Match Growth In Crushing Capacity Domestic production hasn't been able to match the growth in crushing capacity, said traders.
China's soybean production in 2002-03 is pegged at 16.51 million tons, with about half of that going to crushing.
In 2003-04, China's soybean output is forecast around 16.2 million to 16.7 million tons, according to most analysts.
But the annual crushing capacity in China has grown to about 60 million tons, traders said, driven by lucrative crush margins.
"China's per capita income is rising...The demand for refined oils and meat and poultry products is just growing incredibly...," an analyst from a Beijing-based brokerage house said.
High prices of pork and chicken also boosted demand for imported soybeans, because soymeal, the by-product of soybeans, is a major feed ingredient for livestock and poultry.
