May 28, 2007

 

China soybean prices higher on limited stocks; soyoil higher

 

 

Soybean prices in China's major producing regions were higher in the week to Friday (May 25), as farmers have limited stocks on hand.

 

In Harbin, the provincial capital of Heilongjiang province, China's largest soybean growing region, prices of average quality soybeans were at RMB2,900-2,940 a   tonne compared with RMB2,860-2,880/tonne a week ago.

 

Prices in the north-eastern part of the province were around RMB2,840-2,900/tonne, up from RMB2,820-2,840/tonne a week earlier.

 

Soybean prices may rise a little further due to low stocks, said traders.

 

Despite sluggish demand, soyoil prices surged, supported by bullish longer-term prospects for global vegetable oil demand and rising prices of imported soyoil.

 

But the recovery of soymeal prices is likely to curb room for further rises in soyoil prices, said China Food Network.

 

As soymeal and soyoil are made by crushing soybeans, processing plants do not need to raise soyoil prices to cover their losses if soymeal prices are bullish.

 

In north-eastern Dalian city, prices of fourth-grade soyoil were at RMB7,600-7,800/tonne, up from RMB7,400-7,600/tonne a week ago.

 

In Shandong province, fourth-grade soyoil prices were at RMB7,600-7,800/tonne, higher than RMB7,300-7,650/tonne in the previous week.

 

In southern Guangdong province, fourth-grade soyoil was at RMB7,450-8,000/tonne, up from RMB7,250-7,600/tonne.

 

Soymeal prices were slightly higher but under pressure from a slow recovery in the animal feed sector and a large amount of stocks.

 

In Jiangsu province, prices of average-protein soymeal were at RMB2,380-2,400/tonne, higher than RMB2,300-2,400/tonne a week earlier.

 

In Guangdong province, prices of average-protein soymeal were at RMB2,360-2,430/tonne compared with RMB2,300-2,370/tonne a week ago.