Wednesday, January 30, 2013
Surging Chinese Soybean Crush Has Global Impact
Accelerated by economic growth, China has rapidly become the world’s largest crusher of soybeans, capturing the value added from processing beans into oil and meal.
Demand for soy oil in the food sector has remained strong, supported by rising incomes and changing diets. Rising production of soy oil has eroded the need for imports.
Demand for meal in the feed sector has been stimulated by the expanding use of commercial feed which contains a higher percentage of soybean meal. Increasing supplies of meal are partially offsetting demand for other feed ingredients.
Most of the beans used for crushing are imported from Argentina, Brazil, and the United States.
Conversely, much of the domestic beans are used directly for food, or more recently, has been sold to state reserves.
Meanwhile, some excess meal produced from those imported beans is also being exported in greater quantities to nearby Asian markets.
China has logistical advantages in flexible shipping sizes and delivery terms compared to major traditional exporters.