June 14, 2010

 

 

Soy prices in the major producing areas of China were stable in the week to Friday (Jun 11), with trading very light as both farmers and processors were unwilling to make deals.

 

Soy prices in Suihua, Heilongjiang province, were RMB3,440-RMB3,480 (US$503-US$509) a tonne, stable from a week earlier. In Jixian, Heilongjiang, prices were RMB3,400-RMB3,420/tonne (US$498-US$501), unchanged.

 

Farmers have completed spring planting of soy over area slightly higher than earlier expected. But China National Grain and Oils Information Centre said Wednesday (Jun 9) in its initial forecast for output of major crops that it expects the country's soy output to decline 3.3% to 14.5 million tonnes due to reduced area from a year earlier.

 

Meanwhile, temperatures are high in the major producing areas of north-eastern China, and signs are appearing of mild drought in some areas of Heilongjiang province, which could have a negative impact on soy growth, Galaxy Futures said in a note Friday.

 

Soyoil prices were lower amid ample supply. Fourth-grade soyoil prices in Dalian were RMB7,600-RMB7,650/tonne (US$1,112-US$1,120), compared with RMB7,650/tonne a week ago. Fourth-grade soyoil prices in eastern Shandong province were RMB6,950-RMB7,000/tonne (US$1,017-US$1,025), down from RMB7,000-RMB7,070/tonne (US$1,025-US$1,035).

 

Soymeal prices were lower, in tandem with futures market prices and due to ample stocks - topped up with high soy imports. Prices in Dalian were RMB2,680-RMB2,750/tonne (US$392-US$403), compared with RMB2,780-RMB2,850/tonne (US$407-US$417) a week ago. In Guangdong province, they were RMB2,680-RMB2,700/tonne (US$392-US$395), down from RMB2,760-RMB2,800/tonne (US$404-US$410).

 

China imported 4.37 million tonnes of soy in May, up 24% from a year earlier, Customs data issued Thursday (Jun 10) showed.