February 12, 2009
China January soy prices stable on rising demand
According to China Zhengzhou Grain Wholesale Market, the prices of soymeal in January fetched RMB3,517.65 per tonne in China, dipping 0.95 percent from December 2008.
The average price of soymeal stood at RMB3,683 per tonne at the Zhengzhou market in January, a drop of 1.77 percent from the prior months.
Attracted by the prospect of earning more profits in soymeal crushing, Chinese soymeal processors increased their operations last month which in turn boosted the demand for soymeal. Moreover, the Chinese government has launched policies to support the soymeal industry. These two factors encouraged the stabilisation of soymeal prices.
Soymeal prices in Northeast China, a major soymeal producing area in the country, are expected to stay around RMB3,550 to RMB3,700 per tonne in the future due to the Chinese government's plan to purchase 3 million tonnes of soymeal yielded in the area for state reserve.
As of January 17, Heilongjiang Province had sold 2.925 million tonnes of soymeal, 1.7 million tonnes less than a year ago with 1.69 million tonnes sold to the Chinese government.
