Menzie of USDA’s World Agricultural Outlook Board; Yoonhee Macke of

Rapid growth in demand for soybeans and soybean products has outstripped supply in China over the past two decades. Liberalization of production and trade policies in China has facilitated the country's boom in soybean imports, though some recent policy changes have disrupted imports. The sharp surge and sudden fall in international soybean prices during the first half of 2004 affected U.S. and South American soybean traders, as well as many Chinese soybean crushers, causing slower soybean imports. The increased imports of crude soybean oil during the last 18 months due to high demand may have prompted the Chinese government to introduce stricter standards on soyoil trade. Despite short-term disruptions, China's demand for soybean and soybean products continues to look strong and provides favorable opportunities for U.S. soybean exports