June 23, 2008

 

China soy up on strong soymeal prices, limited stocks

Soy prices in China's major producing regions were higher in the week to Friday on strong soymeal prices and limited soy supplies.

 

Soy prices in the Suihua region of Heilongjiang, a major producing province, were around RMB5,200 a tonne, compared with RMB5,040/tonne a week ago.

 

Soy prices in Jiamusi in the same province were around RMB5,100/tonne, up from RMB4,900/tonne.

 

The high soymeal prices boost the crushing profits of soy processing plants, thus supporting soy prices, said Yu Haifeng, an analyst at Tianqi Futures.

 

The short position holders of soy futures traded at Dalian Commodity Exchange also need to purchase limited cash soys to cover their positions.

 

Soy stocks at the DCE fell 4,286 lots to 507 lots as of Friday.

 

Soy oil prices were higher as the demand has picked up somewhat and crushers are trying to lock in profits with greater sales volume.

 

The prices of first-grade soy oil in Rizhao city in Shandong province were around RMB12,150/tonne, compared with RMB11,070-RMB11,500/tonne a week ago.

 

In Dongguan city in Guangdong province, first-grade soy oil was priced around RMB11,950-RMB12,050/tonne, up from RMB10,880-RMB11,200/tonne a week ago.

 

Soymeal prices were higher along with the surge in futures prices.

 

Soymeal prices in Rizhao city in Shandong province were at RMB4,460-RMB4,550/tonne, compared with RMB4,120-RMB4,250/tonne a week ago.

 

Soymeal prices in Dongguan city in Guangdong province were between RMB4,500/tonne and RMB4,550/tonne, up from RMB4,100-RMB4,250/tonne a week ago.

 

Livestock companies were making losses due to the high soymeal prices, which may curb the demand for soymeal in the coming weeks, said China National Grain And Oils Information Centre.