China soy prices tad down on expectations of high supply

 

 

Soy prices in China's major producing areas dipped slightly in the week to Friday (June 19), as the prospect of rising imports pressured prices.

 

With government buying drawing to a close, the supply shortage of preceding weeks had also largely ended.

 

Soy prices in Jiamusi city in Heilongjiang, a major producing province, were around RMB3,540 a tonne, slightly down from RMB3,600/tonne a week ago.

 

In Suihua, also in the same province, they were around RMB3,560/tonne, unchanged from a week ago.

 

"Imports have been a lot higher this year and there are expectations in some quarters that they will increase more," said Wang Shaoguang of Galaxy Futures.

 

In the January-May period, soy imports rose 27 percent, and volumes may remain high in coming months.

 

Imports in June and July are estimated to reach about 4.7 million tonnes and 3.6 million tonnes, respectively, compared with 3.6 million tonnes and 3.5 million tonnes last June and July, said Gao Yanrong, research manager for Dalu Futures.

 

The average monthly import volume for the first five months of 2009 was 3.5 million tonnes compared with an average of 3.1 million tonnes for last year.

 

Soyoil prices fell in the week to Friday.

 

First-grade soyoil prices in Dongguan in Guangdong province were around RMB7,600/tonne, down from RMB7,880/tonne a week ago.

 

In Rizhao in Shandong province they were around RMB7,500/tonne, down from RMB7,750/tonne a week ago.

 

Soymeal prices were also lower.

 

Soymeal prices in Dongguan were around RMB3,520/tonne, down from RMB3,650/tonne a week ago; in Rizhao they were around RMB3,380/tonne, down from RMB3,400/tonne a week ago.