March 6, 2008

China's soy acreage to expand up to 8 percent in 2008

China estimates a 6-8 percent expansion in its soy planting area this year as soy offers promising profits, an agribusiness firm said.

The Beijing Orient Agribusiness Consultant, Ltd. (BOABC), reported that Chinese soy prices repeatedly hit new highs in 2007, which has accomplished its high price advantage today.

The relative price of soy to corn has far exceeded the normal level of 2.2 to 2.4.

BOABC made its general prediction that China's soy planting area might grow larger on account of the promising profit.