Chinese soybean imports could fall around 18% year-over-year to under 15 million tons in Q3 as processors can't cover their costs with bird flu outbreak sapping demand for the animal feed ingredient they make, industry officials say
April 13, 2014
– Chinese soyabean imports will drop as processors cannot cover their costs with a bird flu outbreak sapping demand for the animal feed ingredient they make.
Imports to the country, which typically buys 60 percent of the oilseed traded in the world, could fall below 15 million tons in the third quarter from 18.25 million in the same period last year, traders and industry officials said.
That would likely cap a rally in global prices as it would coincide with bumper supplies from Brazil and Argentina hitting the market. Chicago Board of Trade front-month soybeans edged lower on Thursday after climbing to their highest since July in the last session when the US Department of Agriculture cut its forecast for ending stocks.
“If you crush beans in China today you lose $80-$100 a ton,” said a Singapore-based senior executive with a global trading company that has processing facilities in China.