June 25, 2007

 

China's soybean prices inch up while soyoil prices fall

 

 

Soybean prices in China's major producing regions were slightly higher in the week to Friday (June 22), but trading was light due to reduced demand from soy oil processing plants.

 

In Harbin, the capital of Heilongjiang province, China's largest soybean growing region, prices of average quality soybeans were at RMB3,040-RMB3,080 a metric tonne, from RMB3,000-RMB3,040 a week earlier.

 

Prices in the northeastern part of the province's Jiamusi city were around RMB2,960/tonne, unchanged from a week earlier.

 

Falling soy oil prices curbed any further rise in soybean prices, while demand for soybean is still strong.

 

Soybean imports in June will likely reach 2.8 million tonnes, the China National Grain and Oils Information Centre

(CNGOIC) said in its weekly report.

 

China imported 2.96 million tonnes of soybean in May, up 23 percent from a year earlier, said the General Administration of Customs Friday.

 

In Shandong province, fourth-grade soy oil prices were at RMB7,850-RMB7,950/tonne, down from RMB7,950-RMB8,100/ton in the previous week.

 

In southern Guangdong province, fourth-grade soy oil was at RMB7,900-RMB7,950/tonne, down from RMB8,000-RMB8,150/tonne.

 

In the eastern city of Dalian, fourth-grade soy oil was at RMB8,100-RMB8,300/tonne, down from RMB8,300-RMB8,400/tonne a week earlier.

 

Soy oil prices will likely fall further in the near term on ample supply amid sluggish demand, said CNGOIC.

 

China imported 258,273 tonnes of soy oil and 405,855 tonnes of palm oil in May, up 1,458 percent and up 7.6 percent on year respectively, according to data from Customs.

 

Soymeal prices were mostly lower as feedmeal plants were not actively buying due to the slow recovery of the feedmeal sector and ample stocks.

 

In Jiangsu province, prices of average-protein soymeal were at RMB2,280-RMB2,380/tonne, compared to RMB2,300-RMB2,350/tonne a week earlier.

 

In Guangdong province, prices of average-protein soymeal were at RMB2,280-RMB2,360/tonne, lower than RMB2,300-RMB2,360/tonne a week earlier.

 

Analysts expect soymeal prices to consolidate in the near term.