July 23, 2007

 

China soybean prices higher on dwindling stocks; soy oil up

 

 

Soybean prices in China's major producing regions were higher in the week to Friday (July 20) on dwindling stocks.

 

In Harbin, the capital of Heilongjiang province, China's largest soybean growing region, prices of average-quality soybeans were RMB3,040-RMB3,050 a tonne, higher than RMB3,000-RMB3,020 a week earlier.

 

Prices in Jiamusi City in the northeastern part of the province were around RMB2,960/tonne, compared with RMB2,900 to RMB2,920/tonne a week earlier.

 

The trading volume was light, as most mid-size and small processing plants in Heilongjiang province have stopped production for overhaul.

 

The eastern region in the province has had a drought since the start of this month, which may affect grain output there, Xinhua News Agency said.

 

But demand for imported soybeans has been diminishing on rising import prices and ample imported supply.

 

Soyoil prices rose, supported by dwindling soyoil imports due to high international prices, said Global Food Network.

 

In Shandong province, fourth-grade soy oil prices were RMB8,200 to RMB8,280/tonne, higher than RMB8,000 to RMB8,200/tonne in the previous week.

 

In southern Guangdong province, fourth-grade soy oil was at RMB8,050 to RMB8,100/tonne, compared with RMB7,850 to RMB8,000/tonne last week.

 

In the eastern city of Dalian, fourth-grade soy oil was near RMB8,250 to RMB8,300/tonne, higher than RMB8,100/tonne a week earlier.

 

China imported only 80,000 tonnes of soyoil in June, far less than the 258,273 tonnes imported in May.

 

Soyoil prices are likely to remain high in the near term on strong demand, China National Grain and Oils Information Centre said in its weekly report issued Friday (July 20).

 

Soymeal prices were higher, after supply pressure eased somewhat as many processing plants stopped production.

 

Stocks at feedmeal enterprises dwindled, and the gradual recovery of the breeding sector helped to increase the demand, said agricultural information provider alibaba.com.

 

In Jiangsu province, prices of average-protein soymeal were RMB2,500 to RMB2,600/tonne, compared with RMB2,380-RMB2,470/tonne a week earlier.

 

In Guangdong province, prices of average-protein soymeal were RMB2,450 to RMB2,550/tonne, compared with RMB2,340 to RMB2,480/tonne a week earlier.