China is the world’s top soybean importer, but they’re taking steps to reverse that trend. Agri Money dot Com reports that China plans to massively increase its oilseed production over the next four years. The move should reverse a trend that’s seen soybean imports rise dramatically, even as excess corn continues to stockpile in government inventories. China’s top policy body announced a goal of increasing soybean production 56 percent from 2014 to 2020. The shift toward planting more soybeans comes on the heels of policies designed to shrink the number of acres planted to corn. The goal is to rebalance commodity supplies in the domestic market. China’s demand for soybeans is driven by the largest chicken and pork sector in the world, while rising world incomes are driving the demand for meat higher as well. The country has an oversupply of corn stocks as production has grown every year but one since 2005. The overproduction was stimulated by government subsidies that kept Chinese corn prices above the prices in the rest of the world.
From the National Association of Farm Broadcasting news service.