China: Oilseeds and Products Update

Reductions in government support to corn production encouraged Chinese farmers to plant more oilseeds, primarily soybeans. Hence, Post’s forecast MY17/18 for Chinese soybean production stands at 14.1 million metric tons (MMT) or a net growth of one MMT. This is based on acreage increase of 9.1 percent from the previous year. However, China’s rising demand for oilseeds continues to far exceed the growth in domestic oilseed production. Chinese oilseed imports are expected to grow to another forecast record of 91.5 (MMT) in MY17/18, up three MMT compared to the previous year estimate. Forecast steady economic growth at about 6.7 percent in 2017, and the continuous modernization of China’s domestic feed and livestock sectors are boosting consumption of oilseed products. Soybean meal use is partially up driven by a significant fall in imports of distiller's dried grains (DDGS) imports since January 2017.

China: Oilseeds and Products Update