April 28, 2006

China soy prices unchanged, supply, demand balanced

Soy prices in China's major soy producing areas were mostly unchanged in the week to Friday (Apr 28), as demand and supply were almost balanced, traders said.

In Heilongjiang province, China's largest soybean-producing region, prices of average quality soybeans were quoted on either side of RMB2,280 a tonne, unchanged from last week.

In the eastern and northern parts of the province, prices were at RMB2,100-RMB2,240/tonne, almost the same as RMB2,140-RMB2,200/tonne quoted a week earlier.

Dealers said farmers were hurrying to sell soybeans as spring sowing is around the corner, which is a negative factor for prices.

On the other hand, soyoil producers were trying to buy soybeans to maintain ample stockpiles ahead of the week-long public holiday next week.

"Soyoil producers are willing to accept farmers' prices and everyone is happy with the deal," said a trader who is familiar with the situation.

As such, China's soybean prices were largely steady and unchanged in many regions.

Friday, South American soybeans were quoted at RMB2,481/tonne, up from RMB2,464/tonne a week earlier.

US-origin beans were quoted higher at RMB2,533/tonne, compared with RMB2,513/tonne a week earlier.