China soy prices unchanged as government stockpiling ends

 

Soy prices in Jiamusi city in Heilongjiang, a major producing province, were around RMB3,540 a tonne, unchanged from a week ago. In Suihua, also in the same province, they were around RMB3,560/tonne, similar to a week ago.

 

"Soy prices have reached a stable level," said Wang Xiaoguang of Galaxy Futures. "Stockpiling has wound down, and there aren't much stocks left on farmers' hands."

 

Prices may see more upside as the gap between local and imported rates remain wide, while shipments from overseas continue to rise, suggesting steady demand, Wang said.

 

China's soy imports may surge to a record 4.3 million tonnes in June. The average monthly import volume for the first five months of 2009 was 3.5 million tonnes, while the average for last year was 3.1 million tonnes.

 

Futures prices bounced this week on a USDA annual acreage report Tuesday (Jun 30) that US soy planted areas coming in lower than expected.

 

Farmers and traders hope more import policies are in the works that would limit foreign competition.

 

Talk is still circulating that the government is considering adjusting soy's current three percent import tax and 13 percent value-added tax, though Wang said such talk has made the rounds for many months.

 

Soyoil prices fell slightly in the week to Friday.

 

First-grade soyoil prices in Dongguan in Guangdong province were around RMB7,200/tonne, down from RMB7,300/tonne a week ago.

 

In Rizhao in Shandong province they were around RMB7,250/tonne, unchanged from a week ago.

 

Soymeal prices rose slightly in the week to Friday.

 

Soymeal prices in Dongguan were around RMB3,450/tonne, up slightly from RMB3,420/tonne a week ago; in Rizhao they were around RMB3,400/tonne, up from RMB3,330/tonne a week ago.

 

US$1 = RMB6.83260 (Jul 3)