Soybeans imported from Brazil are unloaded in a port in Nantong, East China's Jiangsu Province, in April 2018. Photo: IC

 

China's soybean planting area in the year from 2021 to 2022 is estimated to reach 9,347 thousand hectares, a decrease of 5.4 percent compared with the previous year, according to an analysis released by the Ministry of Agriculture and Rural Affairs on Wednesday.

According to the report, the main reason for the decrease in soybean planting is the rising strengths of corn planting, making some soybean farmers swift to growing corn.

In the main soybean producing areas of Northeast China, the natural conditions are suitable for growing soybeans, and the yield will likely steadily increase. The yield of soybeans is expected to record 1,995 kilograms per hectare, an increase of 0.6 percent over the previous year. Total soybean production is expected to reach 18.65 million tons, down 4.8 percent from the previous year.

Meanwhile, China's demand for soybean has been going strong this year, in relation to relatively stable supply, estimated by a Chinese Agricultural Outlook Committee (CAOC) report released in March. 

CAOC also predicted that US soybean capacity in new season will reach a record high, at around 123 million tons. With soybean capacity reduced in Argentina and increased in Brazil, global soybean price will remain elevated due to shrinking global supply.