March 10, 2008

 

China soy prices lower as CBOT prices weaken

 

 

Soy prices in China's major producing regions were lower in the week to Friday (March 7, 2008) on falling soy futures prices.

 

Soy prices in Jixian in Heilongjiang province were around RMB5,400 a tonne, down from RMB5,600-RMB5,800/tonne.

 

The rumor that the government will sell state reserved vegetable oil caused panic in the futures market, pushing prices much lower on the Dalian Commodity Exchange.

 

Falling soy prices at the Chicago Board of Trade this week also aroused concern among farmers and traders of potential further price declines, said Yu Haifeng, an analyst at Tianqi Futures.

 

He said cash price trends will depend on futures prices.

 

However, the fall is not expected to be short term due to reduced domestic output.

 

Soy output in Heilongjiang province in 2007 was 4.91 million tonnes, down 27 percent on year, according to data from the province's statistics bureau.

 

Soyoil prices were lower on tumbling vegetable oil futures prices both domestically and abroad.

 

Traders were eager to sell on concerns about further price falls, said China Soy Network.

  

US$1=RMB 7.114