Expert: China has 'ample' Soybean and oil, will import more

10:44, October 26, 2010      

Email | Print | Subscribe | Comments | Forum 

Supplies of soybeans and edible oil can satisfy domestic demand because of adequate stockpiles and growing imports, a senior foodstuffs expert said on Monday.

"We have ample stockpiles," Shang Qiangmin, director of the China National Grain and Oils Information Center, told reporters.

Price hikes have hit China's edible oil market in the past three months. The average wholesale price for soybean oil increased by more than 30 percent from 7,100 yuan ($1,066) a ton to 9,400 yuan a ton in late October, figures from the center showed.

The wholesale price hike has sparked worries that the increase will be passed on to the retail market shortly. But Shang said supplies can easily satisfy market demand.

"The rally was driven by price increases on the international market due to the high synergy between the domestic and global market," he said.

The country's soybean supply is adequate and imports will see a huge increase this year, Shang said. Soybean imports are expected to reach 54 million tons, surpassing last year's 42.55 million tons, he said.

China's soybean imports may hit 4.65 million tons in October, 4.5 million tons in November and 4.7 million tons in December, he said.

China is the largest soybean importer and it is heavily reliant on the international market, as about 60 percent of the country's edible oil is imported. Imports include extract oil, soybeans and oilseeds.

Stockpiles for soybeans held by the country have also increased significantly in the past two years, Shang said without giving specific figures.

The US Department of Agriculture (USDA) has cut its forecast for this year's grain yields, sparking price hikes both in the futures markets and the spot markets, he said.

Soybean prices have risen in the Chicago Board of Trade for a third week and speculation that China will sustain purchases in turn stimulated the price increase, analysts said.

US soybean sales rose 85 percent from a week earlier to 2.02 million tons in the week to Oct 14, with about 72 percent of the sales going to China, USDA figures showed.

Besides soybean oil, a slew of agricultural products including cotton and sugar have joined the recent price fluctuations, partly due to speculation, analysts said.

Driven by the rising food prices, China's consumer price index (CPI), a major gauge of inflation, will continue rising, said Qu Hongbin, HSBC's chief economist in China. But CPI will hit a ceiling by the end of the year before beginning to go down, Qu said.

Food prices account for about 30 percent of China's CPI basket.

Source: China Daily

(Editor:石希)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion