March 28, 2008

 

China soy prices low amid sluggish demand

 

 

Soy prices in China's major producing regions were lower in the week to Friday on falling demand, with traders staying on the sidelines after the recent tumble in prices.

 

Prices in Jiamusi city in Heilongjiang province were around RMB 4,600 per tonne, down from around RMB 4,820 per tonne a week ago. The volume traded was very low.

 

The arrival of South American soy pressured the domestic market, and demand for locally produced soy is likely to remain low in the coming weeks, China National Grain and Oils Information Center said in its weekly report Friday.

 

Soy oil prices fell on weak futures prices.

 

First-grade soy oil in Rizhao city in Shandong province was trading between RMB 12,400 to RMB 13,000 per tonne, down from RMB 12,800-RMB 13,100 per tonne a week ago.

 

Prices in Dongguan city in Guangdong province were RMB 12,200-RMB 12,500 per tonne, down from RMB 13,300-RMB 13,500 per tonne a week ago.

 

Cash prices are unlikely to fall or rise significantly in the near term; the market will await clear signs from the futures market next week, said Heilongjiang Jiusan Oil and Fat Co. in a statement.

 

Ample supply and U.S. economy woes will keep prices consolidating at current levels, it said.

 

Soymeal prices also fell on sluggish feed meal demand.

 

Prices in Rizhao were RMB 3,600-RMB 3,720 per tonne, down from RMB 3,700-RMB 3,800 per tonne the previous week.

 

Prices in Dongguan were RMB 3,500-RMB 3,650 per tonne, down from RMB 3,650-RMB 3,700 per tonne a week ago.

 

The market is awaiting the prospective plantings report for the 2008-09 marketing year to be issued by US Department of Agriculture on Monday.

 

CNY 1 =US$0.14 (March 28, 2008)