Chinese soy buyers are keen for new US crop and have bought at least 300,000 tonnes last week after falls in Chicago Board of Trade prices, said the China National Grain and Oils Information Centre (CNGOIC).

Some crushers had to shut down production due to high soymeal stocks. Large arrivals continued to delay unloadings at major ports and high soy stocks have restrained demand for near-month cargoes, said the centre.

Falling crude soyoil prices, now below RMB7,000 (US$1,032) per tonne, have attracted purchases by refineries, and purchases were seen to increase in coming weeks.

Sluggish demand from feedmills have prompted crushers to lower their prices after a brief pickup in prices earlier.

Feedmills are cautious about increasing corn purchases or imports due to poor returns on pig breeding. Outbreaks of pig diseases in some flood-hit areas in the south have hurt demand for corn and market participants do not expect corn prices to stay bullish in June and July.

US No.2 corn prices C&F for August shipment were US$225/tonne, RMB148  (US$21.83)/tonne cheaper than domestic prices.

Some corn processors have shut down facilities for maintenance, which has reduced purchases.

State grain companies have purchased 12.21 million tonnes of new wheat from farmers, a 2-million tonne fall from the year ago period. Sinograin, the government buying agency, has bought 9.4 million tonnes.