January 28, 2008

 

China soy prices stable; volume light due to limited stocks

 

 

Soy prices in China's major producing regions were stable in the week to Friday, and volumes were light as farmers were reluctant to sell.

 

Soy prices in Jiamusi city in Heilongjiang province were around RMB4,460 a tonne, almost unchanged from a week ago.

 

Farmers have only 30 percent-40 percent of their production left unsold, and they were not willing to sell due to the limited stocks.

 

This means it will be difficult for soyoil processing plants in Heilongjiang to maintain normal production after the Chinese New Year in early February, said the China Farming Network.

 

Tumbling soy futures prices at the Chicago Board of Trade, a result of US subprime woes, provided a good buying opportunity for Chinese importers, which have been purchasing South America soy for delivery beyond March.

 

Soyoil prices were lower as most processing plants have completed their preparation for the Chinese New Year in early February.

 

In southern Guangdong province, fourth-grade soyoil prices were RMB12,000-RMB12,200/tonne, compared with RMB12,000-RMB12,300/tonne last week.

 

In Shandong province, fourth-grade soyoil prices were RMB12,100-RMB12,300/tonne, down from RMB12,200-RMB12,450/tonne a week ago.

 

Soyoil prices are likely to fall further ahead of the holiday on sufficient supply, said the China National Grain and Oils Information Center.

 

Soymeal prices were also lower on falling soymeal futures prices on CBOT and domestic exchanges.

 

In Guangdong province, prices of average-protein soymeal were at RMB3,550/tonne-RMB3,650/tonne, down from around RMB3,700/tonne.

 

In Jiangsu province, prices of average-protein soymeal were around RMB3,600/tonne-RMB3,620/tonne, compared with RMB3,700/tonne a week earlier.

 

Demand for soymeal may pick up ahead of the Chinese New Year as stocks at feedmeal companies are low, said the CNGOIC.