China denies foreign monopolisation of local soy market

There is no sign of foreign capital intending to manipulate soy purchases in China's main soy production base in north-eastern region, according to China's State Administration of Grain (SAG).

Recently, there was news of foreign traders strengthening their control in Chinese grain field. One example was that Singapore-based grain giant Wilmar International will inject large investments in China's soy market to monopolise non-GM soy market.

The news can be traced back to August 2008 when Wilmar International was said to invest RMB3 billion (US$439 million) to purchase soy in the north-eastern region.

However, an official with Wilmar's subsidiary had denied the news, saying that the company so far had only bought 90,000 tonnes of soy in China's north-eastern region, less than 0.8 percent of the region's total output.

Lin Zhaofu, general manager of a grain analysis firm, also denied any unusual move of foreign capital in China's soy market.

In addition, an official with SAG said China is likely to increase state soy reserves in the near term to relieve the current pressure on soy farmers in selling their crops.