May 19, 2008
Outlook: China soymeal bullish, soyoil weak
China's official think thank on Friday (May 16) said that the country's soy market is seen bearish in the coming week as negative crushing margins lowered demand.
Despite soy price hikes in the Chicago Board of Trade, local demand has not picked up and interest for imports remained low, according to the China National Grain and Oils Information Centre (CNGOIC).
The soymeal outlook remained upbeat as demand from the breeding industry has elevated, particularly from the increasing fish farming industry, it said.
Futures for soyoil remained weak due to excess supply despite strong anticipation on decreasing global prices.
The wheat outlook ticked up after flour mills increased inventories amid low supplies from farmers, it said. The new winter wheat crop has not yet reached the market.
The corn market was seen strong amid higher offers from processors.
The centre gave the following index data.
|
|
May 14 |
May 7 |
April 30 |
|
Soy |
50.6 |
50 |
48.8 |
|
Soymeal |
55 |
53.5 |
50.5 |
|
Soyoil |
48.3 |
43.3 |
44.2 |
|
Corn |
57.1 |
57.6 |
58.8 |
|
Wheat |
52.4 |
50.5 |
51 |
A reading below 50.0 indicates participants are bearish, a reading of 50.0 indicates they are neutral and a reading above 50.0 indicates they are bullish.
