July 30, 2009
No bids for China's second state soy reserve sale
China's second attempt to sell 500,000 tonnes of soy from its state reserves has ended without any bids being received, according to the National Grain & Oil Trade Centre.
The auctions were held on Wednesday (Jul 29) afternoon in the northeast provinces of Jilin and Heilongjiang and the neighbouring region of Inner Mongolia, which are the major soy producing areas in China.
The minimum bidding price of RMB3,750 (US$549) was about RMB200 (US$29) higher than the spot market price and it was unchanged from the auctions held last Thursday (Jul 23), which also ended without any sales.
Meanwhile, analysts said the Chinese government will have to consider reducing prices or subsidising crushers if it hopes to sell off enough reserves to make space for the new harvest due in September.
