China has auctioned today well 300,000 tonnes of soybeans from national reserves to the local market. All offered soybeans have been sold up on small amounts. That alleviates the bottleneck that currently prevails in China. More auctions are to follow.
This offer is intended for the manufacture of foodstuffs for human consumption. Imports, most genetically modified, are in China only as animal feed consumed. For the month of September only 2.7 million tons of soybeans on the world market are ordered by China, the requirement is but three to four million tons in the month.
The beans from the national reserve are from the harvest year in 2010 and 2012. The Chinese reserves of soybeans are estimated to be five million tons. Soy beans grown in China are not genetically modified, and so these beans cost more than imported goods.
In northern China, there is currently a bottleneck with soy beans to be used for human consumption. In the populous South of the country, you need more imported goods.
