January 7, 2008

 

China soy prices higher on limited supply, may rise more
 

 

Soy prices in China's major producing regions were higher in the week to Friday (January 4, 2008) on limited supply.

 

Farmers have limited stocks on hand and are reluctant to sell in anticipation of higher prices, said grain information provider alibaba.com.

 

Soy prices in Jiamusi city in Heilongjiang province were around RMB4,340 a  tonne, up from around RMB4,280/tonne a week ago.

 

Soy prices in Qianjin in the province were around RMB4,280/tonne, higher than RMB4,200-RMB4,260/tonne the week before.

 

The recent surge in soy futures on the Chicago Board Of Trade and Dalian Commodity Exchange also helped support domestic soy prices.

 

Soyoil prices surged this week on strong demand ahead of the Lunar New Year holiday.

 

In Shandong province, prices of fourth-grade soyoil were around RMB11,700/tonne, higher than RMB10,960-RMB11,650/tonne the previous week.

 

In southern Guangdong province, fourth-grade soyoil prices were between RMB11,200-RMB11,400/tonne, up from RMB10,600-RMB11,300/tonne a week ago.

 

Soymeal prices were mostly stable.

 

In Jiangsu province, prices of average-protein soymeal were between RMB3,680-RMB3,720/tonne compared with RMB3,650-RMB3,720/tonne a week earlier.

 

In Guangdong province, prices of average-protein soymeal were around RMB3,550/tonne compared with around RMB3,550-RMB3,650/tonne.

 

But demand for soymeal is likely to fall in the coming weeks due to increased stocks and the weak profits of feedmeal companies, the China National Grain and Oils Information Center said in its weekly note.

 

RMB1 = US$0.1375 (Jan. 7)