China to stabilize soybean imports, diversify sources

A state grain reserve department official said this Thursday, May 11, that China will stabilize and diversify its soybean imports as the country continues to promote higher domestic production of the crop.

The world’s biggest soybean buyer significantly increased soybean production to 20 million tons last year, leaving a surplus of about 5 million tons after consumption, Lu Jingbo, deputy director of the National Administration of Food and Strategic Reserves, told a news conference.

The imported soybeans are crushed to produce cooking oil and soybean meal for animal feed, while the more expensive domestic soybeans are mainly used to make food for human consumption.

China has increased purchases of domestically produced soybeans to support producers as part of its policy to increase oilseed production.

The country bought 4.18 million tons of new soybeans by the end of March, 1.71 million tons more than a year earlier, Lu added.

For imports, China will “develop new soybean source markets while stabilizing traditional soybean markets,” Lu added.

He did not say whether “stabilizing” means limiting or curbing the growth of imports from traditional soybean markets.

Brazil and the United States are the main suppliers of soybeans to China and dominate supply.

To help reduce its heavy reliance on soybean imports, the country launched a three-year action plan in April to reduce the use of soybean meal in animal feed.

China also expects a good wheat crop this year, Cong Liang, head of the department, said in the same press conference.

Despite the recent sharp decline in the domestic wheat price to around 2,800 yuan ($405.09) per ton, it is still well above the minimum price set by state reserves that would trigger government support, he said.

Source: Money Time

To read the original article, go to: https://www.moneytimes.com.br/china-estabilizara-importacoes-de-soja-e-diversificara-fontes-diz-autoridade-estatal/

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