China in 2017/18 MG is importing a record amount of soybeans
Analysts of the FAS USDA forecast that in 2017/18 MG soybean imports to China will reach a record high – 89 million tons, 3 million tons will exceed the projected results of the current season. Soybean exports from the United States will remain at 30 million tons, but will increase competition from South American countries.
the Increase in imports of soybeans by China due to increased demand for vegetable oil and high protein meal.
the Volume of foreign purchases will continue to grow, despite the interest of local farmers in cultivation of soybean. The profitability of its cultivation is usually equal, and in some regions exceeds the profitability of corn production. However, due to poor quality seeds and non-compliance of crop rotation, soybean yields in Chinese farmers does not exceed 17,9 t/ha.
Experts expect that in the new season, China will increase the import of rapeseed by 200 thousand tons to 4.1 million tons by a decline of its own production by 400 thousand tons to 13.1 million tons, which will be the lowest figure the last 7 years.
Increased consumption of soy has not yet affected international prices. On news of good crops in South America may soybeans on the Chicago stock exchange during the week fell from 370 $/t 362 to $/ton.
In Ukraine, purchasing prices for soybeans dropped to 5-6 $/ton and are 380-385 $/ton for deliveries to the port. Due to the short-term strengthening of the hryvnia to 26.80 UAH/$ prices for soybeans fell by 200-300 UAH/t. However, yesterday's fall of the hryvnia to UAH 27,10/$ allow hryvnia prices strengthened.