January 20, 2006

 

China soybean prices steady ahead of Lunar New Year break
 

 

Soybean prices in China's major soybean-producing regions remained steady in the week to Friday as some processors delayed buying more soybeans ahead of the Lunar New Year holidays.

 

In Harbin, the capital city of Heilongjiang province - China's largest soybean-producing region - prices of average quality soybeans were around RMB2,500-RMB2,520 a tonne, almost unchanged from a week ago.

 

In Jilin province in northeastern China, prices were around RMB2,580/tonne, also unchanged from the previous week.

 

Agricultural and industrial goods are mostly transported by rail to ports in China. However, since most of the space in trains will be used to ferry large numbers of people home to celebrate the Lunar New Year at the end of January, some processors have decided to delay their purchases, said Wang Zhengang, soybean analyst with China National Grain & Oils Information Center.

 

Meanwhile, demand for soymeal from processors has dropped as more poultry is being slaughtered for the festival.

 

Soymeal, a byproduct of soybeans, is usually used as animal feed in China.

 

Analysts believe soybean prices will probably remain at current levels next week.

 

In the first 10 days of January, approximately 1.3 million tonnes of soybeans were imported from the US and 400,000 tonnes from South America, according to statistics provided by COFCO Futures Co.

 

China National Cereals, Oils & Foodstuffs Corp., a major grains trading company, holds a controlling stake in COFCO Futures Co.