February 5, 2009
China to increase state purchases of rapeseed
China plans to increase state purchases of 1.35 million tonnes of domestic rapeseed by another 150,000 tonnes to help farmers, said traders and sources on Wednesday (Feb 4).
The total purchases, accounting 13 percent of domestic production, and drought concerns drove up soy and vegetable oil prices on Wednesday.
The additional purchase will be mainly in the northwest areas, where farmers are unable to sell their harvest, said an industry source.
China's purchases of domestic rapeseed at higher prices had prompted an increase of cheap Canadian imports. Analysts expected imports in 2008-09 to increase to more than 1 million tonnes.
Drought in areas like Hubei spurred speculation and supported prices, said an analyst with CIFCO Futures Co. Ltd.
However, weather officials expected minor damage to rapeseed as major growing areas were unaffected.
