By Bloomberg News June 10 (Bloomberg) -- Soybean imports by China, the world’s biggest buyer, were lower than expected in May, which could support local prices, Wanda Futures Co. said. Inbound shipments of 4.37 million metric tons were below the market estimate of at least 5 million tons, Wang Chen, head of research, said by phone from Beijing. Imports increased 4.1 percent from April and compared with 3.52 million tons in May last year, according to customs data. “The market had been expecting a huge amount of imports, so if this figure is true, the supply pressure is not as large as previously thought,” Wang said. Lack of warehousing has delayed bringing soybeans into the country. Imports into China’s Shandong province are being held up as storage capacity is “full,” the China National Grain & Oils Information Center said in an e-mailed statement June 4. Some crushers have canceled or delayed shipments for June- July delivery, the center said today. Buyers have canceled five to eight cargoes, while some delayed five to seven shipments to August, the center said in its daily report. “If the May number turns out to be true, it’s likely some cargoes have been delayed or canceled,” said Chen Baomin, manager at Jilin Grain Group Co., by phone from Dalian. “Still, the fact remains China’s soybeans are oversupplied, sales of soybean meal and oil are very weak, crush margins are falling, and the demand outlook is bearish,” Chen said. Purchases of soybeans in the first five months were 19.6 million tons, up from 17.4 million tons in the same period last year, according to customs data. China’s 2009-2010 imports may climb to 47.5 million tons from 41.1 million tons the previous year, according to the center. --William Bi. Feiwen Rong. Editor: James Poole To contact Bloomberg News staff for this story: Feiwen Rong in Beijing at +86-10-6649-7563 or frong2@bloomberg.net

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