China expected to increase soybean purchases this year
China’s ban on feeding table scraps to pigs is seen as a game changer in the international grain trade because the country’s hog producers now require significantly more feedgrain
The country’s annual feed demand may eventually rise by 30 million tonnes, and soybeans would be the main beneficiary
By Sean Pratt, The Western Producer (Canada)
September 2, 2021
China will be a much larger buyer of soybeans this year than the market is anticipating, says an analyst.
“My sense is that all the current estimates of Chinese imports for 2021-22 are understating the figures,” Dorab Mistry, director of Godrej International, told delegates attending a conference organized by the U.S. Soybean Export Council.
“In reality China and China-based players are going to buy a lot more than what they are talking about today.”
He said the Chinese government is making a “Herculean effort” to drive down prices of the commodity by releasing stocks and forcing speculators to liquidate their positions.
“This cannot last,” said Mistry.
“Eventually they will have to replenish their stocks. They will have to boost their imports and at that stage, I tell you, crush margins will come back.”
Other panelists shared that bullish outlook for the commodity...