China's Soybean Imports Soar 51% on Month, Fall 13% on Year on Low Margins

Soybean imports by China, the world’s biggest, climbed 51 percent in March from the lowest level in more than two years. Shipments fell 13 percent from the same month last year.

Inbound movements were 3.51 million metric tons compared with 2.32 million tons in February and 4.01 million tons in March last year, according to customs data released today. The February total was the least since October 2008.

“The jump from February was not surprising as demand slowed that month because of Lunar New Year and a halt in customs’ operations” delayed some cargoes, said Chen Baomin, a manager at Jilin Grain Group Co. in Dalian. The March volume was lower than the monthly average, which “confirms our view that low crushing margins and weak demand for meal have forced people to slow shipments,” he said today.

Imports averaged 4.4 million tons a month from the start of the marketing year on Oct. 1 through to Feb. 28, according to customs data compiled by Bloomberg.

China is predicted to import 57 million tons of soybeans in the 2010-2011 marketing year by theU.S. Department of Agriculture, 13 percent more than the year before. Purchases increased 21 percent to 25.6 million tons from Oct. 1 through to March 31 from 21.2 million tons a year before, customs data show.

A slowdown in demand for livestock feed may keep imports this year as low as 51 million tons, analyst Monica Tu of Shanghai JC Intelligence Co. said in interview April 6.

The country imported 320,000 tons of vegetable oils in March compared with 410,000 tons in February and 560,000 tons in March 2010, customs data show.

(Source: http://www.bloomberg.com/news/2011-04-10/china-s-soybean-imports-soar-51-on-month-fall-13-on-year-on-low-margins.html)