China soy prices up on gains in futures, tight supply

 

 

Soy prices in China's major producing areas were higher in the week to Friday (August 7), boosted by a surge in futures prices.

 

Prices in Harbin city in Heilongjiang, a key growing province, were around RMB3,640 (US$531.60) a tonne compared with RMB3,580-RMB3,600 a week earlier.

 

In Jiamusi, also in Heilongjiang province, prices were RMB3,560/tonne, up from RMB3,480-RMB3,520/tonne.

 

The low volumes sold by the government during its weekly soybean auctions also meant local supply remained tight, supporting prices, said analysts.

 

Soyoil prices jumped on the rise in futures prices, with trading volume up significantly.

 

First-grade soyoil prices in Dongguan in Guangdong province were RMB7,500/tonne, up from RMB7,000-RMB7,050 a week ago. In Rizhao in Shandong province too they were around RMB7,500/tonne, versus RMB6,800-RMB6,950/tonne.

 

Traders and users were buying actively as most of them expect soy product prices on the Chicago Board of Trade won't fall much in the near term, supported by a weak dollar and the recovery in crude prices, said China National Grain and Oils Information Centre in a note.

 

Soymeal prices were also higher, along with rising futures prices.

 

In Dongguan, soymeal was around RMB3,550/tonne, up from RMB3,350/tonne a week ago. In Rizhao, it was around RMB3,500/tonne versus RMB3,280/tonne.

 

Analysts said soymeal prices are likely to be supported as soybean imports in August and September will likely fall on high prices; local soymeal stocks are at low levels.

 

US$1 = RMB6.83 (Aug 7)