Soybean Imports Expected to Drop in China

By CnAgri2012-08-15 13:14:24 Print

China’s soybean imports registered 5.87 million MT in July, 4.4% more than the month before and 9.7% more than the same period of last year. Soybean imports totaled 34.92 million MT in January ~ July, an increase of 20.16% on the year-on-year basis, accredited to big profit in soybean crushing in the second quarter of this year.

Soybean import price hit RMB4,821/MT on August 13, up 15% on the year-on-year basis. In view of the high import price, soybean import volume is presumed to shrink in the second half of this year. Monthly soybean imports are predicted to drop to 4.5 million MT in August and 4 million MT in September and October.

Soybean supply is expected to be abundant in the second half of this year for two reasons: First, soybean stock at Chinese ports adds up as large as 6.5 million MT currently. Second, the state-run grain system delivers about 400,000 MT soybeans to the auction market every two weeks this year.

From "China Oil and Oilseeds Market Weekly Report"