China's soy prices show slight decrease

Soy prices in major producing areas of China were slightly lower in the week to Friday (May 21), and trading was light as farmers were busy with spring planting.

 

Prices in Jiamusi in Heilongjiang province were at RMB3,440-RMB3,480 (US$504-US$510) a tonne, lower than RMB3,440-RMB3,500 (US$504-US$513) 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.

 

Trading was almost stagnated as farmers do not have much stock on hand, and traders were not buying actively.

 

As of May 10, farmers in Heilongjiang province, the biggest producer, have around 450,000 tonnes of soy left on hand, less than 10% of the total traded crop, according to data from the China National Grain and Oils Information Centre.

 

Soy planting in the northeast has been delayed 10-15 days, and heavy snowfalls and low profits have caused a decline in area under cultivation, it said.

 

Soyoil prices were lower due to weak demand. Fourth-grade soyoil prices in Dalian were around RMB7,300-RMB7,350/tonne (US$1,069-US$1,076), down from RMB7,450/tonne (US$1,091) a week earlier. Fourth-grade soyoil prices in Shandong province were RMB7,100-RMB7,200/tonne (US$1,040-US$1,055), versus RMB7,200-RMB7,250/tonne.

 

Although soyoil imports are likely to fall in coming months due to China's restrictions on imports from Argentina, ample imported soy arrivals will continue to weigh on soyoil prices, traders said.

 

China imported 14,917 tonnes of soyoil last month, down 94% on year; it imported 4.2 million tonnes of soy in the same period, up 13%, according to data from the General Administration of Customs.

 

Soymeal prices were lower, along with the fall in futures prices. Prices in Dalian were at RMB2,920-RMB3,050/tonne (US$428-US$447), compared with RMB3,030-RMB3,050/tonne (US$444-US$447) a week earlier.

 

In Guangdong province, they were at RMB2,850-RMB2,980/tonne (US$417-US$436), down from RMB2,980/tonne a week earlier.