Chinese soyabean importers may seek to cancel or delay more soyabean shipments as the government sells its soyabean stocks cheaply, which could pressure global prices, Hamburg-based oilseeds analysts Oil World said on Tuesday. China confirmed cancellation of six to eight soyabean shipments and delays to 20 others on Tuesday partly because of the Beijing government's decision to sell state soyabean stocks in the domestic market at low prices to combat inflation.
"It is considered likely that additional cancellations or postponement of shipments will be made," Oil World said. "Given China's importance for global soyabean trade, this issue bears the potential for additional downward pressure on soyabean prices in the near term." Traders say China's government has agreed to sell 3 million tonnes of soyabean reserves at low prices in return for a freeze in retail soyaoil prices by crushers receiving the cheap supplies.
"However, subsidized soyabean sales of 3 million tonnes can alleviate the situation for Chinese crushers only temporarily given their monthly requirements of 4.0 to 4.5 million tonnes," Oil World said. This would still be sharply up from the 50.3 million tonnes China imported in 2009/10.
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