China: Oilseeds and Products Update

Soybean meal (SBM) consumption for 2019/20 and 2018/19 are unchanged from August’s report, but down from their preceding year as domestic swine inventories continue to shrink due to African Swine Fever (ASF). Soybean imports in 2019/20 are set to be the lowest in five years. A reduction in 2019/20 and 2018/19 soybean oil consumption will be substituted with larger imports of palm and sunflower seed oils. The market for vegetable oils continues to diversify and is expected to witness further growth into 2019/20. Encouraged by subsidies favoring soybean production, farmers have increased planted area and the 2019/20 forecast remains at 17.1 million tons. Expanded soybean area has prompted projected production above the previous year. 

China: Oilseeds and Products Update