April 16, 2007

 

China soybean prices stable; soyoil prices up

 

 

Soybean prices in China's major producing regions were largely stable in the week to Friday (Apr 13), but soyoil prices were higher during the same period on rising palm oil prices and import prices.

 

In Harbin, the provincial capital of Heilongjiang province, China's largest soybean growing region, prices of average quality soybeans were between RMB2,900-2,940 a tonne, versus RMB2,920-2,950/tonne a week ago.

 

Prices in the north-eastern part of the province were around RMB2,800-2,840/tonne, little changed from RMB2,800-2,820/tonne a week earlier.

 

"The processing plants purchase less soybeans, while farmers (were not eager to sell) as they only have about 10 percent of their harvest at hand," said a Beijing-based analyst at China National Grain & Oils Information Centre.

 

However, soyoil cash prices rose on rising palm oil prices and higher imported soyoil prices.

 

In Heilongjiang province, where soyoil is made by crushing domestic soybeans, the prices of fourth-grade soyoil ranged from RMB6,950-7,200 a tonne, higher than RMB6,920-7,020/tonne a week earlier.

 

In Jiangsu province, the prices of fourth-grade soyoil were at RMB7,020-7,200/tonne, compared with around RMB7,050/tonne a week before.

 

In Guangdong province, the prices of fourth-grade soyoil were at RMB6,750-7,150/tonne, compared with RMB6,700/tonne a week earlier.

 

Soymeal prices fell due to the slow recovery of the feeding sector.

 

Soymeal is used as animal feed.

 

In Heilongjiang province, the prices of average protein soymeal were between RMB2,240-RMB2,340/tonne, stable from that of last week.

 

In Jiangsu province, the prices of average protein soymeal were at RMB2,350-2,420/tonne, lower than RMB2,420-2,440/tonne a week earlier.

 

In Guangdong province, the prices of average protein soymeal were RMB2,380-2,430/tonne, compared with around RMB2,440/tonne in the previous week.

 

Analysts expect soymeal prices to fall further to around RMB2,300/tonne in the short term as processing plants will likely sell them at lower prices on large amount of stocks.