May 18, 2009

Soy prices in China's major producing areas rose in the week to Friday (May 15) as farmers were busy with spring planting, resulting in less supply in the market.

 

Soy prices in Jiamusi city in Heilongjiang, a key growing province, were around RMB3,380-RMB3,400 a tonne, up from RMB3,260/ton a week ago.

 

In Suihua, also in the same province, they were around RMB3,340-RMB3,360/tonne, up slightly from RMB3,300/tonne a week ago.

 

Trading was light as farmers were reluctant to sell the crop in expectation of higher prices.

 

The government's additional purchases of soy helped push up local prices.

 

Higher futures on the Chicago Board of Trade also helped push prices higher.

 

Soyoil prices were higher on rising futures.

 

First-grade soyoil prices in Dongguan in Guangdong province were around RMB7,900-RMB8,000/tonne compared with RMB7,650-RMB7,950/tonne a week ago.

 

In Rizhao in Shandong province, they were around RMB7,850/tonne compared with RMB7,700-RMB7,850 a week ago.

 

However, views on soyoil prices were mixed, with some expecting higher prices in line with CBOT, while others believe big arrivals of imported soy in recent months will lead to ample domestic soyoil supply curbing any price rise, according to a report from the China National Grain and Oils Information Centre.

 

Soymeal prices were lower on weak demand, and the confirmed cases of AH1N1 in mainland China caused worries about falling pork consumption.

 

Soymeal prices in Dongguan were around RMB3,160 to RMB3,180/tonne, down from RMB3,200/tonne a week ago. In Rizhao, they were around RMB3,080-RMB3,100/tonne, down from RMB3,200/tonne.