June 15, 2009

China's traders are expected to keep imports at a low level in coming weeks due to ample domestic supplies, according to an official survey by the China National Grain and Oils Information Centre (CNGOIC).

More buyers are withholding their procurements as the Chicago Board of Trade soy prices rose for the fifth consecutive day to a nine-month high.

Following the lower-than-expected imports in May, China's commerce ministry is expecting record soy imports in June at 4.62 million tonnes.

Meanwhile, soyoil traders were cautious last week after the decline in prices. Some merchants were losing money from their expensive cargoes bought at a higher price the week before, the ministry said.

As feed mills withheld their purchases following the price gains, trading on the soymeal market was inactive as a result.

On the other hand, the corn market outlook remained bearish as corn processors in the northeast lowered their purchase prices after market talk that the Chinese government might sell reserves and offer subsidies to some processors in the area. However, corn offered at ports held firm amid tight supplies.

Wheat demand stayed steady but flour sales were weak.