October 18, 2011

China's soy imports this year are expected to drop about four million tonnes from last year, the first negative growth since 2006, analysts said.

According to the USDA, China's orders for US soy had amounted to 11.8 million tonnes by October 6, compared with 13.3 million tonnes in the same period of last year.

The latest data from the General Administration of Customs showed that the country imported 4.13 million tonnes of soy in September, down 11% on-year and the imports in the first nine months dipped 6.1% from the year earlier period to 37.71 million tonnes.

Experts attributed the fall in imports to stock pressure as well as marketing season of new soy.

Since the beginning of this year, the government has released about four million tonnes of reserve soy into the market and the market needs time to digest the stocks, analysts said.

Besides, sharp fall of soy futures on the outside markets in September may delay some shipments of imported soy, they added.

Meanwhile, domestic crushers now make about RMB250 (US$39) losses for producing one tonne of soyoil and this will also suppress enterprises' importing enthusiasm.

Last year, China's soy imports hit 54.8 million tonnes, a jump of 28.8% over the preceding year.