Huge imports weigh on China's soy prices

Soy prices in China's major producing areas fell slightly in the week to Friday (Jan 22), as large supplies from record imports weighed on prices.

Soy prices in Harbin, the major producing province of Heilongjiang, were around RMB3,780/tonne (US$554), about RMB10-20/tonne (US$1.46-US$2.93) lower than the previous week.

In Jiamusi, also in Heilongjiang province, prices were around RMB3,750/tonne (US$549), which were also about RMB10-20/tonne lower.

''It is true that with the Chinese New Year, prices should start going up because of higher demand, but the high levels of soy imports recently and lower US soy prices are affecting prices here,'' said Huang Yingyan, a soy analyst with Nanhua Futures.

The Chinese government is supporting prices by purchasing soy from major producing areas in the northeast at RMB3,740/tonne (US$548), higher than the RMB3,700/tonne (US$542) it offered for last year's crop.

Meanwhile, soyoil prices in Harbin were around RMB7,950/tonne (US$1,165) in the week to Friday, edging lower from RMB8,000/tonne (US$1,172) a week earlier.

Soymeal prices in Harbin were around RMB3,200/tonne (US$469), down from RMB3,260/tonne (US$478).