China is expected to have produced 12.8 million tonnes of soyabeans in 2012, down 11.6 percent from the previous year, with the planting area falling for the third year in a row, a government think-tank said on Monday. As China focuses on boosting output of corn, wheat and rice, it has become increasingly dependent on foreign soya supplies, and now buys 60 percent of globally traded soyabeans.

Imports are expected to reach a record 57.5 million tonnes this year. China's total soyabean planting area fell 9 percent this year to 7.177 million hectares, the National Bureau of Statistics (NBS) said last week. The think tank, the China National Grain and Oils Information Center (CNGOIC) said the figure was higher than expectations, with some researchers estimating an overall decline of 25 percent.

Domestic soya crushers continue to make losses, with crushing margins negative for the eighth straight week this week, but the situation is improving, the think tank said. The price of imported soyabeans stands at around 4,900 yuan ($790) per tonne, down 50 yuan from last week, with crushing margins now at minus 437 yuan per tonne, or 170 yuan per tonne better than last week. Despite negative margins, Chinese crushers have been buying more foreign soya cargoes in the last few weeks as they lock in supplies ahead of the peak consumption season before the Chinese New Year festivities in February.

Copyright Reuters, 2012