January 14, 2008
China soy traders look on bearish market on ample supply
Soy and grain traders in China are expecting a bearish market due to ample supplies prior to the Chinese New Year.
Soy demand was seen weak as record Chicago Board of Trade prices have slowed down buying by Chinese crushers.
However, soy imports were seen high in January, the China National Grain and Oils Information Center (CNGOIC) reported.
China's soy import in January is expected to reach 3 million tonnes after it imported 2.9 million tonnes of soy in December, the center said.
Demand for imported soy in the coming weeks is not projected to rise significantly.
Despite the high CBOT prices, traders are still looking for February and March shipment.
Meanwhile, the soy oil market weakened for the second week in a row on reports that Beijing may release soy oil reserves prior to the Chinese New Year in February.
Corn market ticked up after local governments expressed plans to buy 4 million tonnes of corn for state reserves in the northeast.
The centre released the following index data:
|
|
Jan. 9 |
Jan.2 |
Dec.26,07 |
|
Soybean |
49.4 |
50 |
51.3 |
|
Soymeal |
44 |
46.5 |
47 |
|
Soyoil |
52.5 |
58.3 |
62.5 |
|
Corn |
47.9 |
45 |
43.5 |
|
Wheat |
47.1 |
50.5 |
49 |
