(Bloomberg) -- Soybean imports by China, the biggest buyer, jumped to a record in June after a halt to Argentine soy oil shipments and increasing feed consumption boosted demand from crushers.Shipments jumped 42 percent from May to 6.2 million metric tons, the most ever for a single month, according to Bloomberg data. Purchases in the first six months climbed 17 percent to 25.8 million tons, customs said.
China halted soybean oil shipments from Argentina, the world’s biggest supplier, in April as part of a disagreement over antidumping measures. Soybean imports may increase as hot weather and rain damages crops in China, supporting prices that have fallen about 9 percent this year on expectations of record global oilseed harvests.
“China’s halt of soybean oil from Argentina has led to more domestic crushing to make up for the reduced imports,” Tian Feng, analyst at BOC International (China) Ltd., said by phone from Shanghai today. Also, “some of the cargoes that were previously delayed at ports were able to clear customs in June.”
Beijing blocked imports of soybean oil from Argentina in response to anti-dumping investigations by the South American country on Chinese goods ranging from steel pipes to textiles, according to a state-backed trade group.
Soybeans are crushed for their oil and also processed into meal, an ingredient in feed. China’s soybean imports account for more than half of global exports and are forecast at 48 million tons this year by the U.S. Foreign Agricultural Service in its July report.
‘Sales Improve’
“Sales of soybean meal have improved as it remains the most attractive protein source in terms of price compared with corn and other animal feed,” Tian said.
The U.S. is the biggest soybean supplier to China, with a 45 percent market share in the 2008-2009 marketing year, followed by Brazil with 39 percent and Argentina’s 14 percent, according to a February report from the U.S. Embassy in Beijing.
Soybean futures for November delivery on the Chicago Board of Trade climbed as much as 1.4 percent yesterday to $9.5875 a bushel, the highest price since May 14, on expectations China would buy more of the commodity.
China’s soy crop was hurt by temperatures that reached 106 degrees Fahrenheit (41 degrees Celsius) in northeast regions during the past seven days and too much rain in the south during the past month, Fred Gesser, a senior meteorologist at Planalytics Inc. in Berwyn, Pennsylvania, has said.
Further Gains
Soybean imports by China may gain at least 6 percent next year, driven by rising wealth as rural inhabitants move into cities, figures from U.S. Soybean Export Council last month showed. Imports of “50 million might even be conservative,” said Phillip Laney, the council’s China country director.
“Imports are expected to be high in both June and July and will only come down after August when the market awaits the new crop soybeans to come on stream in the northern hemisphere,” Chen Baomin, analyst at Jilin Grain Group Co.’s import and export division, said by phone from Dalian yesterday.
--Feiwen Rong. With assistance from Winnie Zhu in Shanghai. Editors: Richard Dobson, Paul Tighe.
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Source: http://www.businessweek.com/news/2010-07-10/china-s-soy-imports-jump-to-record-on-argentine-row.html
