Chinese imports of soybeans may climb to 78 million tons for the year starting October 1st because of falling prices and limited alternative feeds according to the chairman of Shandong Sunrise Grain & Oil Trading Ltd. If achieved, this level of imports would exceed the U.S. Department of Agriculture’s (USDA) estimate for Chinese soybean imports of 73 million tons and easily outpace the previous year’s imports of 69 million tons. Demand picking up from China, which the USDA estimates buys 60% of the world’s traded soybeans, could help support prices that have hit a three year low on forecasts for record global production. These record low prices could spark a resurgence in buying especially from those who buy soybeans as a raw material to use a collateral to get credit, or commodity financing. China’s recent ban on imports of U.S. dried distillers’ grains because of the possible presence of corn variety MIR162 could also push more buyers toward soybeans. Sunrise plans to import 13 million tons of soybeans compared to 11 million tons last year according to the company’s annual report.
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