China appears to be buying more soyabeans on the global market after a prolonged period of weak purchasing and the United States is likely to benefit, Hamburg-based oilseeds analysts Oil World said on Tuesday. In the first four to five months of the current 2010/11 season, Chinese soyabean imports had risen strongly, resulting in record soyabean stocks in Chinese ports, Oil World said.
This reduced January-June soyabean shipments to China by the main exporting countries the United States, Brazil and Argentina, it said. "But there are now indications that Chinese buying has picked up," Oil World said. This is likely to contribute to soyabean exports by the United States, Brazil and Argentina rising to a combined 6.65 million tonnes in August, up by about 1.0 million tonnes on July this year, it said.
"We consider it likely that the US will resume exporting soyabeans to China in August," Oil World said. Oil World forecasts US August soyabean exports will rise to 0.97 million tonnes against 0.72 million tonnes in July this year but still down on 1.59 million tonnes in August 2010.
US private exporters reported the sale of 174,000 tonnes of US soyabeans to China for delivery during the 2011/12 marketing year which begins on September 1, the US government said on August 4. Stronger US exports will be welcome to offset expected weaker domestic demand. Oil World warned that weak soyameal demand from the US poultry sector meant US August soyabean crushings are likely to fall to 3.40 million tonnes against 3.46 million tonnes in July and 3.49 million tonnes in August 2010.