According to the American news agency S&P Global Platts as of the beginning of August, soybean processing rates at Chinese oil refineries decreased by more than 1.5 times – to the lowest level over the past year.
The decrease in soybean processing volumes in China by the start of this month was affected by a drop in demand for soybean oil, which, as of June, decreased by 50% per year.
Thus, imports of soybeans to China this month may decrease to 6.2 million tons, which is lower than the expected level of 7 million tons. In September, these figures may also fall – from 6 million tons (previous forecast) to 5.5 million tons.
China buys about 100 million tons of soybeans every season. The main volumes of oilseeds for Asian markets come from the USA, Brazil, and Argentina.
Now the Chinese authorities have taken a course to reduce import dependence on soybeans. Analysts of the Chinese Ministry of Agriculture expect to expand the sown area under oilseeds in the country next season by 18.3% – up to 9.93 million hectares. It is specified that there will also be a reduction in the area under corn due to an increase in soybeans and other oilseeds, especially in the north-eastern regions of the country.