June 1, 2007
 

China's soy prices higher on rising soyoil demand

 

 

Soy prices in China's major producing regions were higher in the week to Friday, supported by rising demand for soybean oil.

 

In Harbin, the capital of Heilongjiang province, China's largest soy growing region, prices of average quality soybeans were at RMB 2,940-RMB 3,000 a tonne, higher than RMB 2,900-RMB 2,940 a week earlier.

 

Prices in the northeastern part of the province's Jiamusi city were around RMB 2,920/tonne, up from RMB 2,840-RMB 2,900/tonne a week earlier.

 

China's soy imports in May exceeded 3 million tonnes, the highest so far this year, said China Grain and Oils Information Centre Friday.

 

Despite increasing imports and rising stocks at ports, some processors are planing to sign more soy import contracts to meet soy oil demand, it said.

 

As domestic farmers now have very limited stocks on hands, soy prices are likely to rise further, said industry sources.

 

Soy oil prices surged on rising international soy oil prices.

 

In northeast Dalian city, prices of fourth-grade soy oil were at RMB 8,500-RMB 8,600/tonne, sharply higher from RMB 7,600-RMB 7,800/tonne a week earlier.

 

In Shandong province, fourth-grade soy oil prices were at RMB 8,200-RMB 8,400/tonne, up from RMB 7,600-RMB 7,800/tonne in the previous week.

 

In southern Guangdong province, fourth-grade soyoil was at RMB 8,200-RMB 8,250/tonne, up from RMB 7,450-RMB 8,000/tonne.

 

Soymeal prices were mostly lower on ample stocks. The processing plants have plenty soymeal stocks on hand as they have speeded up the soy oil production process, whilesoy meal demand was weak.

 

In Jiangsu province, prices of average-protein soy meal were at RMB 2,310-RMB 2,400/tonne, compared to RMB 2,380-RMB 2,400/tonne a week earlier.

 

In Guangdong province, prices of average-protein soymeal were at RMB 2,300-RMB 2,370/tonne compared to RMB 2,360-RMB 2,430/tonne a week earlier.