January 6, 2010

Northeast China's soy producers hoard for price rise

The soy purchase from farmers by soy traders is proceeding slowly in northeastern China's Heilongjiang as the market generally expects the price to go up by the Lunar New Year holiday.

Market expectations hold the soy price will rise to RMB4/kg (US$0.59) by the Lunar New Year in mid February based on the lower soy output in 2008.

Currently, the purchase prices are RMB3.74/kg (US$0.55) in Yabuli area and RMB3.88/kg (US$0.57) in Bayan County but almost none of the farmers are willing to sell their supplies.