China's soy prices stable amid light trading

Soy prices in major producing areas of China were mostly stable in the week to Friday (May 14), with trading very light as farmers were busy with planting.

Prices in Jiamusi in Heilongjiang province were RMB3,440-RMB3,500 (US$504-US$513) a tonne, unchanged from a week ago. Prices in Suihua in the same province were RMB3,500-RMB3,600/tonne (US$513-US$527), stable from a week earlier.

Farmers were unwilling to sell their crop due to limited supplies on hand, while most processors suspended production due to losses.

As of Thursday (May 13), soy farmers in the province planted 1.78 million hectares of the crop, or 42% of the planned area, said Chinese Oil Network on its website.

Soyoil prices were lower tracking a fall in the futures market and due to weak demand.

Fourth-grade soyoil prices in Dalian were around RMB7,450/tonne (US$1,091), down from RMB7,500/tonne (US$1,099) a week ago. Fourth-grade soyoil prices in Shandong province were RMB7,200-RMB7,250/tonne (US$1,055-US$1,062), versus RMB7,350-RMB7,450/tonne (US$1,077-US$1,091).

Increasing volume of cheap imported soy in coming months will continue to pressure soyoil prices, said China National Grain and Oils Information Centre in its report.

Soymeal prices were lower, with prices in Dalian RMB3,030-RMB3,050/tonne (US$444-US$447), down from RMB3,080/tonne (US$451) a week ago. In Guangdong province they were RMB2,980/tonne (US$437), compared with RMB3,050/tonne (US$447) a week earlier.