May 28, 2007

China soyoil and corn prices strong but soy and soymeal weak

The outlook for soyoil and corn remains bullish for the third consecutive week, while forecasts for soybean and meal are likely to stay weak, the China National Grain and Oil Information Centre (CNGOIC) said.

Outlook for soyoil remained strong although the surge was blunted after domestic prices eased as traders became less willing to sign deals at current high prices, the centre said.

Meanwhile, soy outlook made a weak recovery from last week but remained bearish. Rising freight rates had made imported soybeans more expensive, but demand was expected to improve as crushers are now operating at high capacities.

Soymeal supplies remained abundant as demand from the breeding industry had been stagnant.

Meanwhile, corn demand remained strong as processors expanded purchases in the northeastern area to build stocks, which helped to push up prices in the area.