China: Oilseeds and Products Update
Link to report:
China’s soybean imports are forecast to fall to 95 million metric tons (MMT) in marketing year (MY) 20/21 due to excessive beginning stocks following a buying spree in MY19/20. Driven by concerns about COVID-related supply disruptions and an uncertain bilateral relationship with the United States, China imported an estimated 98.5 MMT in MY19/20—a record high. Although feed production and soybean crush are projected to continue growing in MY20/21 to meet demand from the recovering swine herd and growing poultry sector, the beginning of a gradual drawdown in stocks is expected to constrain imports in MY20/21. Soybean production is forecast at nearly 18 MMT this marketing year, an increase of about one MMT over MY19/20 on expanded area, driven by government subsidies and relatively high prices. However, the projected growth in production is less than previously forecast due to the impact of three late-season typhoons in the Northeast.
