Ding Lixin, a researcher at the Chinese Academy of Agricultural Sciences in Beijing, said that imports are likely to sink between August and October, as a surge in imports that started at the end of 2013 has created a glut and cut oil – pressing plants’ profits. Inventories at ports now stand at 7.4 million tons. “Even though the margins of Chinese crushing companies are on the mend, there’s limited room for further improvement as soy oil prices are still weak,” Ding said. “Importing more soybeans won’t effectively improve their financial situation.”…Full Article: China Daily Aug 2014
- In February 2014, Chinese soybean crushers were losing US$80 per metric ton of oil produced. By July 2014, this margin reversed itself with a US$10 per MT profit for crushers.
- In 2013, China imported more than US$38 billion worth of soybeans (>50% from Brazil and >33% from the United States.
- Within China, soybeans are typically processed into soybean meal for animal feed and cooking oil for human consumption.
- February and October are generally when soybean imports hit their lowest by volume in China, with peaks typically occurring from June to July.