(Repeats item published on March 2, no changes in text)
* Record volume of soybean imports to reduce palm oil use
* High palm oil stocks also seen weighing on imports
* Higher purchases of rapeseed oil to further curb demand
By Naveen Thukral and Emily Chow
SINGAPORE/KUALA LUMPUR, March 2 (Reuters) - China's palm oilimports may fall in 2017/18 as the country instead boostspurchases of soybeans, giving it ample supplies of domesticallyproduced soyoil, analysts and industry officials said.
The world's second-biggest economy, which ships more than 60percent of soybeans traded worldwide, bought record volumes ofthe beans in 2017 as the country's demand for protein-richanimal feed ingredient soymeal grows.
But the waning of China's appetite for palm oil - as well asits implications for soybeans - is set to be a key theme for theindustry this year, and likely to be a hot topic at a majorconference in Kuala Lumpur this week. Malaysia is the world'ssecond-biggest supplier after Indonesia of palm oil, used in themaking of everything from cosmetics to food snacks.
"(China's) edible oil demand is not growing as fast as mealdemand, so they have excessive supplies of soybeans," saidveteran industry official M.R. Chandran, now a consultant inKuala Lumpur. "China is buying more soybeans and that demand isessentially driven by higher consumption of soymeal for feedinganimals."
China's soybean imports in 2017 hit an all-time high of95.54 million tonnes, up 13.9 percent from last year's 83.91million tonnes, according to the country's customs data.
The country's palm oil imports in 2017/18 are expected todecline to 4.8 million tonnes as compared 4.881 million tonnes ayear ago, according to U.S. Department of Agriculture estimatesissued on Feb. 8.
Meanwhile, Malaysian palm oil futures 1FCPOc3 traded onthe Bursa Malaysia Derivative Exchange have risen around 2percent in February after declining for the last three months.
Market watchers have ascribed the earlier declines to risingproduction in Southeast Asia. But February prices climbed ontight market supplies as recent rains curbed harvestingactivities.
Existing high palm oil stocks in China of about 600,000tonnes are also expected to depress demand, said David Ng, aderivatives specialist at Phillip Futures in Kuala Lumpur.
"Current stock levels are above market expectation as wellas average levels," he said. "Keep in mind China's demand forsoymeal is going to increase again this year, and that willincrease crush margins and overall demand for soyoil, which willimpact demand for palm."
Elsewhere, China's rapeseed imports are set to rise to 4.7million tonnes this year, up from 4.26 million tonnes a yearago, according to the USDA.
"Rapeseed oil demand will increase as it becomes cheaper.There is parity to import canola oil from Canada as there aregood margins," said one trader in Singapore. "They have bumper(canola) crops in most areas of Canada and Australia, so theseed becomes cheaper."
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http://reut.rs/2F38ST6
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