China, the world's top soya importer, is expected to import 4.4 million tonnes of the oilseed in May, almost flat from a year-ago, according to the latest forecast by China's commerce ministry. For April, imports are expected to rise 24 percent from March to 4.34 million tonnes, but only 3 percent higher than the same period a year ago, according to Reuters' calculation based on the figures released by the ministry and Customs.
The April and May figures both indicate slowing growth from the year-ago periods. In April 2010 imports were rising at an annual 13 percent rate and in May an even faster 24 percent growth rate. China's robust appetite for soya has been scaling back since late last year when Beijing started to release stocks from its huge state reserves as part of efforts to tame food inflation.
Early this month, the government's plan to sell 3 million tonnes of cheap domestic state soya reserves led many buyers to try to defer or cancel their earlier booked South American soya cargoes. The China National Grain and Oils Information Center on Friday said that China has also cancelled two Brazilian soya oil cargoes due to sluggish sales of the cooking oil at home.
"We heard some middle-and-small-sized crushers were closed down since they were facing swelling soya meal stocks, which can not be stored for too long as weather warms up," said Ma Xiaolei, an analyst with Maine Futures. Beijing has ordered banks to tighten loans offered to grain-soya plants as well as other grain companies in buying soya and grains, which triggered a wide sell-off of farm futures on the Dalian market, said Ma.
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