July 17, 2012

China's Heilongjiang soy prices to increase further on tight supply

Due to tight supplies on the local market and robust demand nationwide, northeast China's Heilongjiang Province's soy prices are expected to continue rising.

Local purchase prices of soy increased by CNY30-40 (US$4.71-6.28) per tonne last week to CNY4,240-4,500 (US$665-706) per tonne.

Owing to decreasing stocks of soy, local farmers are less likely to make big deals. Meanwhile, most of local soy crushing mills have suspended production for overhaul.

Currently, demand for soy in China remains strong especially in the food processing industry. Short supply of soy and strong consumer demand are likely to push up soy prices in Heilongjiang higher.

Heilongjiang is the biggest soy production base in China, yielding about 40% of the country's total output of the crop.