The U.S. ag attache in China has lowered its 2012-13 total oilseed production forecast down slightly on lower planted acreage and says due to strong demand for protein meals, it sees higher soybean imports from last season.
The attache estimates 2012-13 total oilseed production at 54.5 MMT, down from its previous forecast of 55 MMT. "Favorable yield gains have been insufficient to overcome total production shortfalls from lower acreage for soybeans," it says, adding other oilseed production remains stable.
The attache projects China will import 61 MMT of soybeans in 2012-13, up from 58.5 MMT in 2011-12.
The attache notes a significant drop in planted area in Heilongjiang Province dampened soybean production forecasts to between 10 and 12.5 MMT. "Disappointing soybean profits in 2011-12 influenced many northeastern farmers to substitute more profitable corn and rice crops in 2012-13," it states.