China soy prices stable; many crushers cease production

Soy prices in China's major producing areas were stable in the week to Friday (Feb 5) as many crushers have suspended production due to the coming Lunar New Year holiday.

 

Prices in Harbin in Heilongjiang province were at RMB3,660-RMB3,820/tonne (US$536-US$560), stable from RMB3,640-RMB3,820/tonne (US$533-US$560) a week ago. In Jiamusi in the same province, prices were unchanged at RMB3,640-RMB3,740/tonne (US$533-US$548). 

 

Trading was very light as some small to medium sized processors have stopped production, and prices were under pressure due to sufficient supply. Millions of tonnes of state reserve soy were bought from the 2008 harvest, and the government's purchases of 2009 soy have been slow.

 

Meanwhile, imported soy arrivals are expected to remain ample until March, while a large volume of cheap South American soy will flow into the market from March. There was also news that China Grain Reserves Corp. plans to sell 200,000 tonnes of 2008 harvested soy to the market for stock rotation, but analysts expect there will be little market interest in the soy. 

 

Soymeal prices were lower and the market expects prices to fall further amid ample soy supply.

 

Prices were at RMB3,150-RMB3,160/tonne (US$461-US$463) in Jixian in Heilongjiang province, stable from a week ago. They were at RMB3,030-RMB3,170/tonne (US$444-US$464) in Dalian compared with RMB3,180-RMB3,310/tonne (US$466-US$485) a week earlier.