November 24, 2010

China's 2010-11 soy imports to hit 54.5 million tonnes 

China's 2010-11 (October/September) soy imports will rise to 54.5 million tonnes from 50.3 million tonnes in the previous year despite its moves to cool the economy, Hamburg-based oilseeds analysts Oil World said Tuesday (Nov 23).

Fears that China's government will raise interest rates to control inflation have generated concern that Chinese commodity demand will slow in months ahead.

"These fears, however, seem to be premature in our opinion," it said. "Chinese demand for vegetable oils as well as dairy, livestock and aquaculture products will continue to rise sizably in the 2010-11 season."

"As it will rise faster than domestic production, a further increase in Chinese imports will be inevitable."

However, a slowing down of Chinese soy purchases is expected in the near future, as the record soy imports in the past three months have resulted in a significant accumulation of stocks at Chinese ports, according to Oil World.

"This season, China will account for approximately 57% of world soy imports," it said.

Chinese 2010-11 soy crushings are forecast to jump by six million tonnes on the season to 53.4 million tonnes, it added.