January 27, 2011

 

China sells 5,000 tonnes of reserve soy at auction

 

 

This was according to the National Grain & Oil Trade Centre.

 

This is the fifth state auction of soy reserves since December of last year. Due to unappealing floor prices, no bidders were attracted into the previous four auctions which were planned to sell a total of about 1.2 million tonnes of soy.

 

Trading has been improving at recent provincial and state auctions of soy reserves mainly due to price hikes of imported soy.

 

Currently, price of imported soy starts to lose its advantage over domestic soy. Imported soy prices at Chinese ports stay at RMB4,250-4,300 (US$645-$653)/tonne compared with purchase prices of home-grown soy at around RMB3,850 (US$585)/tonne.

 

Meanwhile, with tightening global supply, soy prices are expected to rise further in the following period.