June 1, 2012

China sells 12.53% of reserve soy auction

The reserve soy auction of China was able to sell a total of 75,788 tonnes or 12.53% of 604,634 tonnes on Thursday (May 31), according to the National Grain and Oil Trade Center.

Some 64,918 tonnes were sold in Heilongjiang province and Inner Mongolia Autonomous Region at an average price of RMB3,831/tonne (US$601), accounting for 26% of the offered 249,695 tonnes, while 10,870 tonnes or 3.06% of the planned 354,939 tonnes of soy were sold from state reserves in the provinces of Hebei, Shandong, Jiangxi, and Zhejiang at an average price of RMB3,952/tonne (US$620).

The transaction rate fell from that of 31.12% at the previous auction of reserve soy a week earlier when the similar volume was offered.

Meanwhile, the average trading prices at the auction also dropped slightly from the preceding auction.

Edible oil crushing mills lowered trading enthusiasm at the auction as soy supply was eased with increasing imported soy and more reserve soy coming onto the market.

Cooking oil producing mills also held uncertain outlook for international soy prices with systematic risks from the Europe debt crisis. Soy futures traded on the Dalian Commodity Exchange have slumped nearly 7% since the beginning of this month.