China’s soybean imports increased 45% in Dec. on the year-on-year basis, reaching a level of 4.78 million MT. Jan. is expected to see 4.3 ~ 4.5 million MT imports. Soybean stock at Chinese ports was as large as 3.77 million MT at the end of Dec.

The government has recently raised banks’ reserve requirement ratio, conducive to the reduction of speculations in the futures market.

World soybean production and year-end inventory are predicted to be 250 million MT and 59.8 million MT this year, up 20% and 39% respectively over last year.

In view of the estimated abundant soybean supply, BOABC predicts that soybean price is likely to go south this year.