April 30, 2007

Corn and soymeal prices improve in China's market

The outlook for corn remains bullish while forecasts for soymeal have improved, a survey conducted by a Chinese think-tank this week shows.

The outlook for soyoil weakened after spot prices fell as much as RMB 200 yuan ($25.93) per tonne in some areas over worries of falling demand beyond nest week's May Day holiday, the China National Grain and Oil Information Centre (CNGOIC) said in a report.

Soy outlook improved on expectations of heavier demand from crushers after domestic soymeal prices picked up this week and world soybean prices fell to a two-and-a-half-month low.

Meanwhile, soymeal outlook has improved, as prices have stopped falling, though it is still bearish.

Corn prices are seen to be stable as China continues to export corn. Sufficient stocks in northern ports are expected to dampen any price increases.

The outlook for wheat kept bearish. Flour mills were not active buyers on soft flour and wheat bran prices.