China: Oilseeds and Products Update
In anticipation of higher demand for industry feed and protein meal as a result of a recovery in swine production and steady growth in the poultry sector, China’s soybean imports are forecast to hit a record of 86 million metric tons (MMT) in MY16/17, up from the estimated 83 MMT in MY15/16. Post’s forecast for MY16/17 soybean imports is slightly lower than the official USDA data forecast of 87 MMT. As changes in government policy are lowering expectations for corn profits, MY16/17 soybean acreage is up moderately with a forecast production of 12.5 MMT, up from the 11.6 MMT in the previous year. However, growth in soybean production is unlikely to increase the total domestic oilseed supply given the low forecast for rapeseed and cottonseed production.
