China soy prices stable; many crushers halt production

Soy prices in China's major producing areas were stable in the week to Friday (Jan 29), as many crushers stopped production due to falling profits and farmers were reluctant to sell the crop.

 

Soy prices in Harbin in Heilongjiang province were at RMB3,640-RMB3,820/tonne, (US$533-US$560) unchanged from a week ago.

 

Soy prices in Jiamusi in the same province were at RMB3,640-RMB3,740/tonne (US$533-US$548), also stable.

 

Farmers have been reluctant to sell the crop because they expect higher prices, while traders have a large amount of supplies on hand due to blocked transportation to southern consumption areas.

 

Lower soyoil and soymeal prices also squeezed crushers' profits, damping their interest to purchase the crop, said the Chinese Oilseed Network in a note.

 

Trading was almost stagnant as a result, and most crushers do not plan to resume production ahead of the Lunar New Year holidays in mid-February, it added.

 

As imported soy prices are significantly lower than local prices, Chinese buyers are likely to continue importing high volumes of soy in the coming weeks, the China National Grain and Oils Information Centre said in a note.

 

Soymeal prices were slightly lower.

 

Prices were at RMB3,150-RMB3,160/tonne (US$461-US$463) in Jixian in Heilongjiang province, down from RMB3,150-RMB3,200/tonne (US$461-US$469) a week ago.

 

They were at RMB3,180-RMB3,310/tonne (US$466-US$485) in Dalian compared with RMB3,310/tonne (US$485) a week earlier.