July 13, 2011
China's weekly soy auction attracts no bids
China failed to sell any of the 300,414 tonnes of soy reserves it offered at an auction Tuesday (Jul 12) after failures in the past several auctions, the National Grain and Oil Trade Centre said.
This is the 15th batch of state soy reserves put under the hammer since December of last year. However, China only sold out 11,100 tonnes of about 4.46 million tonnes of soy reserves at these auctions.
Weak demand is a main factor to cause the failure in the auction. Domestic edible oil processing capacities are operated at a low level affected by the government's price capping policy which is expected to extend to the middle of August.
Soy demand may remain weak in July and August due to a seasonal drop in edible oil consumption.
