August 6, 2012

China's state reserve sells 400,907 tonnes soy at record price

The state reserves of China sold all 400,907 tonnes of soy that it auctioned on Thursday (Aug 2), with the average price hitting a record on strong demand, the state-backed China National Grain & Oils Information Center said Friday.

The average price reached RMB4,381 (US$691) a tonne, the highest since it began auctioning soy from reserves in 2009, according to CNGOIC.

But prices for state reserve soy are around 8% lower than those for imported soy, which are being quoted around RMB4,750/tonne (US$745) at major ports.

Prices for imported soy on the domestic market are expected to exceed RMB5,000/tonne (US$784) soon due to a recent price surge on the CBOT.