January 4, 2011

China's soy auction attracts no bids

A soy auction on Friday (Dec 31) in China's biggest soy-producing province of Heilongjiang attracted no bids as the floor price was set high, the China National Grain and Oils Information Centre (CNGOIC) said.

The auction of 191,000 tonnes of soy, with a floor price of RMB3,750 (US$573)/tonne, was the fifth the province has held this year, said CNGOIC. Among the five sales, only 55,100 tonnes of the crop were sold in the December 3 auction.

"Mills will not make a profit if they buy from the auction, and farmers are also reluctant to sell in expectation of higher prices amid rising inflation," a CNGOIC analyst said.

Trading in the local cash market is also very light, he added.