Sept. 16 (Bloomberg) -- China, the world’s biggest buyer of soybeans, may import 1.8 million to 2 million tons in October, the fourth straight month of declines, said the state-backed China National Grain & Oils Information Center.

Inbound shipments may tumble from 2.8 million tons this month, said the center in an e-mailed statement today. Imports of 1.8 million metric tons would be the lowest level since February 2007, according to Bloomberg data.

Soybeans in Chicago climbed to a nine-month high in June after stockpiling by China’s government this year to boost state reserves and support local prices pushed imports to a record. Reserves remain high as auctions to reduce inventories before the domestic harvest failed to attract buyers.

“The decline is expected because overseas prices were high and domestically harvested soybeans are coming onto the market in a few weeks,” Guo Tao, an analyst at China International Futures (Liaoning) Co. said today.

China’s imports of soybeans have dropped since hitting a record 4.7 million tons in June, according to Bloomberg data. Shipments in the first eight months reached 29.6 million tons, 21 percent higher than the year ago period, the data showed.

Shipments should bounce back from the end of the year unless the government uses the oilseeds to retaliate against the U.S. for the tire tariffs, Guo added, without elaborating.

Possible Retaliation

Concern spread earlier this week that U.S. tariffs imposed on tires from China will spark a retaliatory slowdown in purchases of U.S. crops and farm products.

The U.S. placed tariffs of 35 percent on tires from China last week, acting on a union complaint that imports were pushing workers out of jobs. China announced a probe into the alleged dumping of American auto and chicken products after the U.S. actions. China is the biggest buyer of U.S. soybeans and the second-biggest importer of poultry and pork.

Government auctions to sell off state reserves to make way for new crop domestic beans have failed to attract any significant buying. The most recent auction today sold only 15,500 tons of soybeans, or 3.1 percent of the about 500,000 tons on offer. The government may consider offering subsidies to crushers to buy the oilseed from local farmers, Li Qiang, chairman of Shanghai JC Intelligence Co., said Sept. 4.

To contact the Bloomberg News staff on this story: Li Xiaowei in Shanghai at Xli12@bloomberg.net

Last Updated: September 16, 2009 06:23 EDT