China: Oilseeds and Products Update
As a result of a recovery in Chinese swine production, tempered growth in the overall poultry sector, and the expected higher domestic demand for industry feed and protein meal, China’s soybean imports are forecast to hit a record of 86 million metric tons (MMT) in MY16/17. Forecast imports are up from the 83.2 MMT level in MY15/16. However, the growth rate of soybean imports slowed due to a forecast recovery in domestic soybean production and China’s sale of oilseed and oilseed product reserves (soybeans and rapeseed oil). The recovery and reserve sales are absorbing market share for food soybeans and vegetable oils. Notwithstanding, forecast lower imports of distiller grains, as a result of China’s implementation of anti-dumping duties, may increase demand for soybean meal and could thus support continued growth in soybean imports.
