May 19, 2008

 

China soy prices mostly stable on limited stocks

 

 

China's soy prices in the major producing regions were mostly stable in the week to Friday, as there was limited soy left on the market and farmers were reluctant to sell.

 

Soy prices in the Harbin region of Heilongjiang, a major producing province, were in a range of RMB4,900-RMB5,240 a tonne, stable from a week ago.

 

Soy prices in Jiamusiin in the same province were RMB4,600-RMB4,800/tonne, little changed from a week ago.

 

Farmers were waiting for higher soy prices, while soy processing plants stayed on sidelines due to ample soyoil stocks, said China Soy Web Site.

 

Planting is 93 percent complete in Heilongjiang province.

 

Soy acreage was expected to be up 7.6 percent this year, up to 3.8 million tonnes from 3.53 million tonnes a year earlier, according to agricultural officials from the province. 

 

Soyoil prices were higher, following increases on the CBOT, but weak consumption limited gains.

 

Prices of first-grade soyoil in Rizhao city in Shandong province were at RMB11,100-RMB11,350/ton, down from RMB11,100-RMB11,350/ton a week ago.

 

The prices of first-grade soyoil in Dongguan city in Guangdong province were around RMB11,100, compared with RMB11,100-RMB11,250/ton a week ago.

 

Soyoil prices continue to be supported by strong global prices, but they are unlikely to rise sharply in the near term due to excess supply, China National Grain and Oils Information said last week in a research note.

 

Soymeal prices continued to rise due to a pick up in demand from the feedmeal sector.

 

Soymeal prices in Rizhao city were around RMB3,760/ton, up from RMB3,600-RMB3,640/tonne a week ago.

 

Soymeal prices in Dongguan city were around RMB3,800/ton, up from RMB3,620-RMB3,650/ton a week ago.