BEIJING: China imported 7.76 million tonnes of soybeans in July, an 18 percent drop from a year ago, after larger purchases in the first quarter boosted domestic stocks, customs data showed on Monday. The number was up slightly from June imports of 7.56 million tonnes. Purchases by China, which buys 60 percent of the soybeans traded worldwide, can heavily influence global oilseed prices which hit 3-1/2-month lows last week after forecasts for a record-large crop in the United States.
China’s soy imports have been strong so far this year as consumers built up stocks amid expectations of tight global supplies and rising demand from Chinese farmers replenishing the country’s hog herd, currently close to a two-year low. Beans are crushed into meal, a key animal feed ingredient, and cooking oil.
Total imports for the first seven months hit 46.3 million tonnes, up from 44.7 million tonnes during the same period of last year. “This year March to May imports were higher than last year so stocks at ports are quite high now,” said Liang Yong, an analyst at Galaxy Futures. A jump in import prices in the second quarter, however, has reduced margins for crushers, and imports are expected to decline during the third quarter.
Buying appetite may also have been dented by expectations that state auctions would inject fresh supplies into the market, said Monica Tu, an analyst with Shanghai JC Intelligence Co. Ltd. Demand for the reserve soybeans has however tailed off, with prices deemed too high for use by crushers, while food users have quality concerns. Customs data also showed China imported 450,000 tonnes of edible vegetable oils in July, up 45.2 percent on the prior month. China imports mainly palm oil, soyoil and rapeseed oil.
