June 20, 2011

Soy import prices are likely to fall in June, though crushing margins for foreign soy are likely to stay in negative territory, the state-backed China National Grain and Oil Information Centre (CNGOIC) said Friday (Jun 17).

Soy import prices reached their highest levels in two-and-a-half years in March around US$593/tonne, up from US$558/tonne in January.

However, prices have begun to erode as negative margins prompted Chinese soy crushers to suspend output and global commodities softened in the second quarter. Free-on-board soy import prices eased to US$581/tonne in May from US$585/tonne in April.

Soy crushers were still seeing losses of around RMB200 (US$31)/tonne on foreign soy in May, though the negative margin has begun to shrink, the agency said. Crushing margins for domestic soy began to enter positive territory around mid-May.

The CNGOIC attributed still-rising soy imports this year to previously booked cargoes.