China soy prices flat as stockpile deflects tight imports

Soy prices in China's major producing areas were mostly flat in the week to Friday, protected by government stockpiling even as import-reliant soyoil and soymeal showed sharper rises on tightening overseas supply.

 

Soybean prices in Jiamusi and Suihua city in Heilongjiang, a major producing province, were around RMB3,240 a tonne and RMB3,300/tonne, respectively. Both the rates were unchanged from a week ago.

 

"Domestic soy cash prices haven't changed much because domestic supply hasn't changed much and government stockpiling has taken away a lot of the fluctuations," said Wang Shaoguang of Galaxy Futures.

 

China is in the final stage of stockpiling six million tonnes of soy at RMB3,700/tonne, in an effort to assure supply and protect rural incomes.

 

In contrast, soy products, relying on imports, have shown greater price sensitivity as foreign supply tightened on weather concerns and fewer plantings. Soyoil prices rose in the week to Friday.

 

First-grade soyoil prices in Dongguan in Guangdong province were around RMB6,900/tonne, up from RMB6,650/tonne a week ago.

 

In Rizhao in Shandong province, they were also around RMB6,900/tonne, up from RMB6,650/tonne a week ago.

 

"Soymeal and soyoil use a lot of imported soy, whereas domestic soy is used mostly for human consumption," Wang said. "So these soy product prices are more market-driven than soy, and move more in step with the Chicago Board of Trade."

 

Soymeal prices in Dongguan were around RMB3,350/tonne, up from RMB3,150/tonne a week ago; in Rizhao they were around RMB3,300/tonne up from RMB3,180/tonne a week ago.

 

US$1 = RMB6.83344 (Apr 10)