June 11, 2007

 

China's soybean prices higher on rising imported soybean prices

 

 

Soybean prices in China's major producing regions were higher in the week to Friday (Jun 8) on rising prices of imported soybeans.

 

Demand for imported soybeans has increased as more processing plants have restarted production after being overhauled, said the China National Grain and Oils Information Centre Friday.

 

In Harbin, the capital of Heilongjiang province, China's largest soybean growing region, prices of average quality soybeans were at RMB2,980-3,010 a tonne, higher than RMB2,940-3,000/tonne a week earlier.

 

Prices in the north-eastern part of the province's Jiamusi city were between RMB2,920/tonne-RMB2,940/tonne, compared with RMB2,920/tonne a week earlier.

 

Soybean prices are unlikely to fall in the near term due to strong demand for soyoil, said Yide Futures.

 

However, soyoil prices were lower on rising vegetable oil imports and ample supplies of imported soybeans.

 

Meanwhile, with the government paying close attention to possible inflationary pressure caused by higher soyoil and pork prices, traders were eager to sell their soyoil stocks to lock in profit, said analysts.

 

In northeast Dalian city, prices of fourth-grade soyoil were at around RMB8,400/tonne, lower than RMB8,500-RMB8,600/tonne a week earlier.

 

In Shandong province, fourth-grade soyoil prices were at RMB8,100-RMB8,150/tonne, down from RMB8,200-RMB8,400/tonne in the previous week.

 

In southern Guangdong province, fourth-grade soyoil was at RMB8,100-RMB8,200/tonne, down from RMB8,200-RMB8,250/tonne.

 

Sluggish demand pushed soymeal prices lower, and the prices are unlikely to pick up in the near term, said traders.

 

In Jiangsu province, prices of average-protein soymeal were at RMB2,280-RMB2,380/tonne, compared to RMB2,310-RMB2,400/tonne a week earlier.

 

In Guangdong province, prices of average-protein soymeal were at RMB2,250-RMB2,350/tonne compared to RMB2,300-RMB2,370/tonne a week earlier.