By William Bi
Dec. 5 (Bloomberg) -- Soybean imports by China, the world’s largest buyer, may increase as domestic buying by state reserves boosts demand for overseas supplies, a state-owned market information provider said.
Demand for soybeans climbed to 52.5, from 51.9 last week, according to an index of agricultural products managed by the China National Grain and Oils Information Center. The index ranks products from 0 to 100 and was in an e-mailed report today.
China this week ordered its reserves to increase purchases of soybeans, corn and rice as slumping prices threaten to reduce farm incomes and planting intentions. Imported soybeans are on average 100 yuan ($14) a ton cheaper than domestic beans, according to Cofco Futures Co.
“Crushing plants will maintain high demand for imported soybeans in the next few weeks,” the grain center said in its report today. Preparations for the nation’s New Year and spring festivals should also ensure steady demand growth, it said.
Purchases of soybean meal may also increase as crushing plants had reduced output in the past few weeks, tightening supplies of the livestock feed, the report said.
The following table lists this week’s ratings for major agricultural products provided by the Grain and Oils Center.
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This Week Last Week 2007 =============================================================== Soybeans 52.5 51.9 48.8 Soybean Oil 53.3 52.5 48.3 Soybean Meal 49.0 47.5 46.0 ===============================================================
To contact the reporter on this story: William Bi in Beijing at wbi@bloomberg.net
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