Chinese soyabean buyers will probably limit their imports in the week ahead, following a slump in domestic soyameal and soyaoil prices, an official survey released on Thursday showed. But lower imports in August and September, coupled with a smaller domestic harvest, could prompt buyers to resume strong imports later, said the National Grain and Oils Information Centre (CNGOIC).
China's soya imports in September were expected to be near the same low level as in August, or at about 2.6 million tonnes. The low imports have reduced stockpiles of imported soya at ports. The slump of Dalian soyaoil prices again restrained physical trading of the cooking oil this week, but soyaoil demand was likely to pick up ahead of October holidays as merchants build inventories, the center said.
Feed mills have turned away from buying more soyameal after the fall of Dalian prices. But possible tightening of supplies after some crushers shut down production could prompt mills to come back to the market, it said. Corn stayed strong, with the market expecting a lower domestic harvest due to drought damage in the north-east. But given the larger planted acreage, the harvest may not fall by a big margin and would not significantly dent supplies.
The Chinese government holds stocks of more than 30 million tonnes and has been releasing stocks every week. The wheat market remained bullish due to better demand, and prices were likely to continue rising in the coming two or three weeks. The sales of state reserves have eased tight supplies of short-grain rice, ahead of the new harvest next month.
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