May 12, 2008

 

China's soy prices stable

 

 

China's soy prices in the major producing regions were stable in the week to Friday, as sluggish soy oil demand prevented processing plants from buying actively.

 

Soy prices in the Harbin region of Heilongjiang province, a major producer, were in the range of RMB4,900-RMB5,240 a tonne, the same as it was a week ago.

 

Soy prices in Jiamusiin the same province were RMB4,600-RMB4,800/ton, unchanged from a week ago.

 

Farmers do not have much of their last year's harvest left but demand from outside the province remains strong.

 

Soy prices are likely to stay strong on reduced supply, said Heilongjiang JiusanOil and Fat Co., a processing company.

 

Most soy oil processing plants in the province have suspended production due to low demand for soy oil demand and high soy prices.

 

The prices of first-grade soy oil in Rizhao city in Shandong province were at RMB11,100-RMB11,350/tonne, down from RMB11,550-RMB11,620/ton a week ago.

 

Soy oil prices are likely to remain weak in the coming weeks as demand is unlikely to pick up significantly, according to the China National Grain and Oils Information Center.

 

However, soymeal prices were higher on demand from the feedmeal sector picking up.

 

The sluggish soy oil prices also helped to support soy meal prices.

 

Soymeal prices in Rizhao city were at RMB3,600-RMB3,640/ton, up from around RMB3,580/ton a week ago.