January 19, 2009

Soy prices in China's major producing areas edged up in the week to Friday (January 16) alongside gains in soymeal prices ahead of the Chinese New Year holiday as soyoil prices slipped slightly.

 

Soy prices in Harbin city in Heilongjiang, a major producing province, were around RMB3,460 a tonne from RMB3,440/tonne a week ago.

 

In Youyi, also in the same province, prices were around RMB3,340/tonne, unchanged from a week ago.

 

Analysts said soy cash prices may be on firmer ground in coming weeks as the government's plan to purchase 6 million tonnes of soy has helped local processing plants shore up prices and eased supply pressure in the domestic market.

 

As demand for soy products is traditionally high ahead of the Chinese New Year holiday, which falls on Jan. 25, "soybean prices will probably be pushed a little higher," said Xu Wenjie, an analyst with Tianma Futures.

 

"Profits at local processing plants hit record highs and their demand for soybean imports remains high," the China National Grain & Oils Information Centre said in a report Friday (January 16).

 

Soymeal prices were mostly stable this week. However, prices in some areas were lower as traders have completed their pre-holiday purchases.

 

In Zhangjiagang, Jiangsu province, soymeal was around RMB3,550/tonne, up from RMB3,500/tonne a week ago.

 

Soymeal demand is likely to fall significantly in the coming weeks, CNGOIC said.

 

Soyoil prices declined in the week to Friday.

 

First-grade soyoil prices in Dongguan, Guangdong province were around RMB7,500-RMB7,600/tonne, compared with RMB7,900/tonne a week ago.

 

In Rizhao, Shandong province, they were around RMB7,350 to RMB7,500/tonne, compared with RMB7,650/tonne a week ago.