China's 2006/07 soybean production is estimated at 16.7 million tons, down 0.2 million from last month due to lower estimated area. Soybean area was lowered this month to 9.3 million hectares, down 0.1 million from last month and down 0.2 million from last year.

According to the Ministry of Agriculture and provincial authorities, total sown area dropped in 2006 for several reasons, including higher production costs, low prices due to pressure from imported soybeans, lower profits, and government policies encouraging grain production. The estimated yield of 1.80 tons per hectare is basically unchanged from last month, reflecting generally good weather this summer.

A spring drought delayed soybean planting in Northeast China, particularly in eastern Inner Mongolia and western Heilongjiang and Jilin. Widespread rain in late June eased the drought, and additional showers in July and early August provided adequate to abundant moisture for crop development.

Periods of cool and cloudy weather this summer have slowed crop progress by several days, raising concerns about yield losses from an early frost. Dry and hot weather delayed the planting and emergence of summer soybeans on the North China Plain, which were planted in mid-June after the winter wheat harvest.

However, the crop has benefited from seasonable weather in July and August, and yield prospects are good. Several typhoons caused locally serious flooding in parts of southern China, but the effect on the region's soybean crop has not been determined.

Source:佚名