August 9, 2010

China soy prices stable amid high imports

Soy prices in China's major producing areas were largely stable in the week to Friday (Aug 6), with large volumes of imports offsetting bullish cues from supply-side fundamentals and Chicago Board of Trade (CBOT) futures.

Analysts said a seasonal consumption downturn helped balance the market despite thinning supplies ahead of the fall harvest, which usually begins in September.

Prices will likely remain within recent ranges this week, with high imports largely factored in around current levels and inclement weather that helped ease recent gains.

Soy prices in Jiamusi in Heilongjiang province, a major producing region, were RMB3,280-3,420 (US$485-$506) a tonne compared with RMB3,240-3,420 (US$479-$506)/tonne a week ago.

Prices in Harbin, also in Heilongjiang, were RMB3,320-3,440 (US$491-$508)/tonne, slightly up from RMB3,280-3,440 (US$485-$508)/tonne.

Soy imports last month likely reached 5.6 million tonnes, which would be the second-highest volume on record, the Ministry of Commerce said.

Fourth-grade soyoil prices in Zhangjiagang in Jiangsu province were around RMB7,600 (US$1,123)/tonne, up from RMB7,400 (US$1,094)/tonne.