July 30, 2007

 

China soybean prices stable; farmers reluctant to sell

 

 

Soybean prices in China's major producing regions were stable in the week to Friday (July 27) as farmers and traders were reluctant to sell due to few stocks at hand.

 

In Harbin, the capital of Heilongjiang province, China's largest soybean growing region, prices of average-quality soybeans were around RMB3,040 a tonne, compared with RMB3,040 to RMB3,050 a week earlier.

 

Prices in Jiamusi City in the northeastern part of the province were around RMB2,960/tonne, unchanged from a week ago.

 

Traders expect soybean imports to fall to about 2 million tonnes a month in the next two to three months, which is traditionally the low season for soymeal trade, as hot weather makes it difficult to preserve soymeal.

 

During April to June, the country imported 2 million to 3 million tonnes of soybeans each month.

 

The reduced supply will help to support soybean and soymeal prices, they said.

 

Soy oil prices were stable, supported by high international soy oil prices and increased buying interest ahead of the Mid-Autumn Festival and the National Day holiday starting late September, said the China National Grain and Oils Information Centre.

 

In Shandong province, fourth-grade soy oil prices were around RMB8,250/tonne, compared with RMB8,200 to RMB8,280/tonne in the previous week.

 

In southern Guangdong province, fourth-grade soy oil was at RMB8,050 to RMB8,200/tonne, compared with RMB8,050 to RMB8,100/tonne last week.

 

In the eastern city of Dalian, fourth-grade soy oil was near RMB8,200 to RMB8,300/tonne, compared with RMB8,250 to RMB8,300/tonne a week earlier.

 

Soyoil prices are unlikely to fall much due to high imported soybean prices, said traders.

 

Soymeal prices were slightly lower on falling soybean and soymeal futures prices.

 

In Jiangsu province, prices of average-protein soymeal were RMB2,390 to RMB2,450/tonne, lower than RMB2,500 to RMB2,600/tonne a week earlier.

 

In Guangdong province, prices of average-protein soymeal were RMB2,400-RMB2,420/tonne, lower than RMB2,450 to RMB2,550/tonne a week earlier.

 

Despite the weak feedmeal demand, soymeal prices are likely to be supported at current range of RMB2,400 to RMB2,500/tonne as the cost of importing soybean continues to be high, said traders.