China soy prices inch higher ahead of Lunar New Year

 

 

 

Soy prices in Jiamusi city in Heilongjiang, a major producing province, were around RMB3,340 a tonne, slightly up from RMB3,300/tonne a week ago.

 

In Suihua, also in the same province, they were around RMB3,420/tonne, also a tad higher than RMB3,400/tonne a week ago.

 

Soy cash prices are expected to remain stable as Chinese supplies are still relying on cheaper imports from the US and Brazil, said Wang Shaoguang of Galaxy Futures.

 

"Over the last few weeks, there has been a lot of booking of imports at largely the same prearranged prices, which is why prices now are more stable," Wang said.

 

Chinese interest in soy imports remains strong, and Barclays Capital said in a note late Thursday global soy prices should continue to be supported by purchases from China, among other factors, in the coming months.

 

The Lunar New Year traditionally spurs demand for soy products, largely driven by meal demand for poultry.

 

Soy oil prices rose in the week to Friday, also supported by a low level of stocks.

 

First-grade soy oil prices in Dongguan in Guangdong province were around RMB7,900/tonne, compared with RMB7,450/tonne a week ago.

 

In Rizhao in Shandong province they were around RMB7,650/tonne, compared with RMB7,350/tonne a week ago.

 

Soy meal prices moved sharply higher.

 

In Dongguan, soymeal was around RMB4,200/tonne, up from RMB3,200/tonne a week ago; in Rizhao, prices were around RMB3,700/tonne compared with RMB3,280/tonne a week ago.

 

Supply remains tight as some processing plants had suspended or reduced production ahead of the Lunar New Year, Wang said.