July 11, 2008
China's soy prices in major producing areas were slightly higher in the week to Friday, as local stocks dwindled and harvest for fresh crop was yet to begin.
Soy prices in Harbin city in Heilongjiang province, the biggest producer, were around RMB5,340 a tonne, up from RMB5,300/tonne a week ago.
Soy prices in Jiamusi in the same province were RMB5,240/tonne, versus RMB5,200-RMB5,220/tonne in the previous week.
Farmers are expecting higher soy prices due to rising costs of inputs such as fertilizers and oil products, said Heilongjiang Jiusan Oil and Fat Co. in a note.
Although China's soy imports in the first half of this year surged 24.4 percent on year to 17.23 million tonnes, analysts said domestic demand has not picked up due to a seasonal slowdown in soyoil consumption.
The rise in imports may have been on a larger-than-expected fall in soy output in 2007, they added.
Soy oil prices fell, tracking a decline in futures on CBOT and Dalian Commodity Exchange.
Sluggish demand in the summer continued to plague the market.
First-grade soy oil prices in Rizhao city in Shandong province were RMB11,600-RMB11,700/tonne, down from RMB11,900-RMB12,000/tonne a week earlier.
Traders were not willing to fill their stocks as they are making losses because of sluggish soyoil demand, said China National Grain and Oils Information Center in its note.
Soymeal prices were also lower on tumbling futures prices, and buyers stayed on the sidelines.
Soymeal prices, which were at a high level, also curbed demand.
Soymeal prices in Rizhao were in a RMB4,580-RMB4,680/tonne range, down from RMB4,600-RMB4,760/tonne in the previous week.
Soymeal prices in Dongguan city were RMB4,500-RMB4,600/tonne, compared with RMB4,580-RMB4,680/tonne earlier.