April 23, 2007

 

China's soybean prices down on sufficient stocks

 

 

Soybean prices in China's major producing regions were lower in the week to Friday (Apr 20), pressured from additional expected supplies.

 

In Heilongjiang province, China's largest soybean growing region, prices of average quality soybeans were between RMB2,700-2,900 a tonne, versus RMB2,800-2,940/tonne a week ago.

 

"The domestic supply is sufficient and processing plants are waiting for the imported soybeans," according to a report from China National Grain and Oils Information Centre or CNGOIC.

 

The expected arrival of a large amount of South American soybeans should pressure prices further in the near term, said traders.

 

Soyoil cash prices were higher on more demand amid stable supplies.

 

Some suppliers hoard soyoil with the expectation of higher prices in the near term, said an analyst at Changjiang Futures.

 

The week-long Labour Day holiday will start from May 1, and demand is likely to increase.

 

In north-east Dalian city, the prices of fourth-grade soyoil were at RMB7,400-7,600/tonne, compared with RMB7,150-7,300/tonne a week ago.

 

In Shandong province, the prices of fourth-grade soyoil were at RMB7,400-7,600/tonne, higher than RMB7,100-7,350/tonne in the previous week.

 

In southern Guangdong province, the prices of fourth-grade soyoil were at RMB7,240-7,400/tonne, higher than RMB6,750-7,150/tonne a week earlier.

 

Soymeal cash prices were lower on large amount of stocks and sluggish demand.

 

In Harbin, the provincial capital of Heilongjiang province, the prices of average protein soymeal were around RMB2,320/tonne, compared with RMB2,240-2,340/tonne in the previous week.

 

In Jiangsu province, the prices of average protein soymeal were between RMB2,220-2,280/tonne, lower than RMB2,350-2,420/tonne a week earlier.

 

In Guangdong province, the prices of average protein soymeal were between RMB2,220-2,340/tonne, lower than RMB2,380-2,430/tonne a week ago.