China: Oilseeds and Products Annual
China is the largest oilseed importer in the world with total oilseed imports at 98.42 million tons (MMT) in MY16/17. Chinese total soybean imports hit another record at 93.5 MMT, absorbing 62.6 percent of total world exports, and 61.2 percent of total U.S. soybean exports. Post estimates this growing trend will continue and drive soybean imports to reach 97 MMT in MY17/18, and hit 100 MMT in MY18/19. Rising incomes, urbanization and the modernization of the domestic feed and livestock sectors will continue fostering Chinese consumption of oilseed products. The United States soybean exports to China are expected to face fierce competition from South American countries in MY17/18 and beyond. Despite a change in China’s government policy in MY16/17 encouraging farmers to plant more soybeans, growth in China’s oilseed production remains constrained by limited arable land and stagnant yield. Thus, China’s oilseed production is estimated to rise modestly to 58.55 MMT in MY17/18 and forecast up slightly to 58.6 MMT in MY18/19. Since its implementation in MY16/17, USDA and U.S. exporters have actively worked to meet China’s new exporter registration requirements for grain and oilseed (known as Decree 177). In January 2018, U.S. exporters for grain and oilseeds successfully completed the registration process.
