March 22, 2010

China soy prices stable amid light trading

 

China's soy prices in major producing areas were mostly stable in the week to Friday, with trading very light as processors were not willing to buy.

Soy prices in Jiamusi, Heilongjiang province, were around RMB3,740 a tonne unchanged from a week ago. Prices were RMB3,800-3,820 per tonne in Suihua, Heilongjiang, also stable.

With traders and processors mostly on the sidelines, farmers were also reluctant to sell, the China National Grain and Oils Information Center said.

Soy futures traded on the Dalian Commodity Exchange also consolidated over the week, as market participants awaited clearer trading guidance from the USDA's planting report - to be released at the end of the month.

Soy prices are unlikely to rise much in coming weeks as more South American soy arrive, analysts said.

Meanwhile, soyoil prices were lower as demand remained weak in early March following a seasonal post-Lunar New Year lull. Soyoil prices in Qingdao, Shandong province, were around RMB7,200 per tonne in the week to Friday, down from RMB7,250 per tonne a week earlier.

Soymeal prices started the week lower due to high stocks, but recovered somewhat as prices on the local futures market rose. Soymeal prices in Siping, Jilin province, were around RMB3,180 per tonne, down from RMB3,200 per tonne a week ago.