BEIJING, Aug 12 (Reuters) – China has lowered its estimates of soybean imports within the yr 2020/21 following a decline in crush margins, the Ministry of Agriculture and Rural Affairs mentioned in its month-to-month crop report on Thursday.
China’s 2020/21 soybean imports had been seen at 98.6 million tonnes, down 1.84 million tonnes from final month’s estimates, because the crushing quantity of soybeans has fallen since July due to declining margins, the report mentioned.
Importers additionally delayed purchases of the oilseed because the market anticipated costs of the brand new crop to fall in response to a bumper U.S. harvest, the ministry mentioned.
China additionally lower its estimates of the crushing quantity of soybeans within the yr 2020/21 on a decrease ratio of soymeal utilized in feed as hog margins have declined since March, and even slipped into destructive territory, the report mentioned.
Analysts and merchants have mentioned that China’s soybean imports had been set to gradual sharply in late 2021 as a collapse in hog margins, and a pointy rise in wheat feed use curbed demand for soymeal, the principle protein supply within the animal recipe.
China’s forecasts of soybean imports and consumption in 2021/22 stay unchanged, the month-to-month China Agriculture Provide and Demand Estimates (CASDE) report discovered.
(Reporting by Hallie Gu and Shivani Singh; modifying by Barbara Lewis)
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