April 12, 2012

China sells 4.97% reserve soy at auction

According to the China National Grain and Oils Information Center, China sold out 15,402 tonnes or 4.97% of the 309,839 tonnes of reserve soy it offered at an auction on Tuesday (Apr 10).

This is the first time the government's reserve soy auction has attracted bidders this year as recovery of the domestic edible oil market helped boosted trading interest.

Currently, bulk soyoil prices average at around RMB10,300/tonne (US$1,633), up about RMB900/tonne (US$142) from a month earlier, while the homegrown soy prices at about RMB4,100/tonne (US$650), up RMB100/tonne (US$16) on-month.

China has arranged 32 auctions of state soy reserves since December 2010. However, the government only sold out 31,500 tonnes of the total 9.68 million tonnes of soy from reserves at those auctions.