February 18, 2008
China soy prices slightly up; trading light during holiday
Soy prices in China's major producing regions were slightly higher in the week to Friday, as farmers weren't selling actively due to the week-long Chinese New Year holiday.
Meanwhile, most oilseed processing plants also stopped production due to the holiday break, and the trading was very light.
Soy prices in Jiamusi city in Heilongjiang province were RMB4,560 to RMB4,600 a tonne, compared with RMB4,540 to RMB4,560/tonne before the holiday.
Soyoil prices were higher on rising soyoil futures prices at the Chicago Board of Trade and the Dalian Commodity Exchange.
In southern Guangdong province, fourth-grade soyoil prices were at RMB12,100/tonne, compared with RMB11,800 to RMB12,000/tonne before the holiday.
In Shandong province, fourth-grade soyoil was at RMB12,600/tonne, up from RMB12,000/tonne in early February.
The heavy snowstorms in southern China have knocked down power stations and many oilseed processing plants have stopped production due to tight power supply.
The reduced soymeal and soyoil production helped support prices, said analysts.
Meanwhile, the snow has badly hit the rapeseeds crops in major producing regions, igniting concerns of reduced rapeseed oil output.
More than 40 percent of winter rapeseed crops have been damaged by the snowstorms and more than 30 percent of vegetable crops have been impacted, said Zhang Yuxiang, chief economist of the Ministry of Agriculture, during a press conference Thursday.
China's vegetable oil prices are likely to rise further in the near term as a result, said Huang Hai, an assistant commerce minister.
Soymeal prices were also higher on expectations of a recovery in the livestock breeding sector after the holiday.
In Guangdong province, prices of average-protein soymeal were at RMB3,650/tonne, up from around RMB3,520 to RMB3,550/tonne.
In Jiangsu province, prices of average-protein soymeal were around RMB3,720/tonne, higher than RMB3,520 to RMB3,600/tonne before the holiday.
