August 7, 2009

China's soy market has turned bullish due to the rising prices of imported soy, which also pushed up soyoil and soymeal prices, a survey by the China National Grain and Oils Information Centre (CNGOIC) said on Thursday (Aug 6).

Soyoil spot prices were lifted by RMB500-600 (US$73.2-US$87.8) per tonne in the week, according to the centre.

Soymeal prices also rose by RMB200-300 (US$29.3-US$43.9) per tonne as breeders began to stock up their inventories.

The centre added that demand for imported soy will remain at high levels in the coming weeks as crushers are reluctant to purchase expensive state soy reserves.

Following two earlier rounds that failed to attract buyers, China sold 4,900 tonnes of soy in the third auction, which was less than one percent of the total on offer.

Meanwhile, corn prices reported a modest drop as state auctions eased the shortages in some local regions. A total of 2.5 million tonnes of corn were sold in the three auctions from the estimated state corn reserves of 40 million tonnes.

The wheat market also turned bullish on expectations of improving flour sales.