China sees excessive first quarter soya supply on big imports

China is expected to import 12 million tonnes of soyabeans in the first quarter, up 2 million tonnes from the previous quarter, creating a surplus, according to a report by an official grain think-tank. China's soya imports in December was seen to hit a monthly record of 4.8 million tonnes.
While imports for January to March would likely reach 4 million tonnes each month, said the China National Grain and Oils Information Centre (CNGOIC). "With 12 million tonnes of imports for the first quarter of next year, in addition with sales of more domestic crops, soya supplies would have a surplus," it said in a report.
The 12 million tonnes of imports seen for China, the world's largest soya importer, in the January to March period would mean a rise of 1.85 million tonnes from the same period this year, it said. While the large imports could prompt soya plants to raise crushing volume, of which 80 percent turns into soyameal, a feed ingredient, soyameal prices could be under pressure, it said. But lower soyaoil imports, or at less than 200,000 tonnes for the first quarter, could support prices of the edible oil, it said.