March 23, 2009

Soy prices in China's major producing areas were mostly stable in the week to Friday (Mar 20), supported by the higher soymeal prices.

 

Soy prices in Jiamusi in Heilongjiang province, a major producer, were around RMB3,320-RMB3,330 a tonne, compared with RMB3,320 the week before. Prices in Suihua in the same province were around RMB3,360/tonne, unchanged from a week ago.

 

Soyoil stocks at processing plants in the northeast producing areas weren't sufficient, and higher soymeal prices also lent support to soy, China Soybean Network said in a note.

 

But the support wasn't enough to push soy prices higher, it said.

 

Trading was very light as many processing plants suspended production.

 

Soyoil prices were lower, despite increases in both futures prices and crude oil prices.

 

First-grade soyoil in Lianyungang in Jiangsu province was around RMB6,450-RMB6,500/tonne, lower than RMB6,650-RMB6,700/tonne a week ago.

 

In Dongguan in Guangdong province, they were around RMB6,500/tonne, down from RMB6,600-RMB6,650/tonne.

 

High soyoil import arrivals in March and ample domestic supply have capped prices, but soyoil purchases could pick up in coming weeks as traders and soyoil users replenish stocks, the China National Grain and Oils Information Center said.

 

Soymeal prices were higher as traders and feed meal companies increased purchases to refill stocks.

               

In Lianyungang, soymeal was around RMB2,900-RMB3,000/tonne, up from RMB2,850/tonne a week ago, while in Dongguan, prices were around RMB2,880-RMB2,980/tonne compared with RMB2,760-RMB2,800/tonne a week ago.

                           

US$1 = RMB6.83460 (Mar 23)