August 13, 2007

 

China soybean prices up on rising soymeal prices

 

 

Soybean prices in China's major producing regions jumped in the week to Friday (August 10), supported by rising soybean meal prices and weather concerns.

 

In Harbin, the capital of Heilongjiang province, China's largest soybean growing region, prices of average-quality soybeans were around RMB3,140 to RMB3,400 a tonne, higher than RMB3,100 a week earlier.

 

Prices in Jiamusi City in the northeastern part of the province were RMB3,020 to RMB3,200/tonne, compared with RMB2,960 to RMB3,040/tonne a week ago.

 

The demand for soy meal has picked up significantly, resulting in increasing demand for imported soybeans, according to China National Grain and Oils Information Centre (CNGOIC).

 

Soy imports are likely to fall below 2.5 million tonnes in August before picking up from September on an expected recovery of feedmeal demand and high soyoil demand, according to industry participants.

 

Shanghai JCI, a consultancy, expects soybean imports to be between 1.8 million and 2.1 million tonnes in August due to slow demand from feedmeal sectors in earlier months.

 

It also raised its soyimports forecast for September to 2.3 million to 2.4 million tonnes from 1.9 million to 2.1 million tonnes earlier.

 

An ongoing drought, which has hit major soybean producing regions in northeast China, has reduced soybean output.

 

Soyoil prices stayed stable at high levels, but prices in some regions fell on falling international palm oil prices and soy oil prices.

 

In Shandong province, fourth-grade soy oil prices were RMB8,500 to RMB8,700/tonne, compared with RMB8,550 to RMB8,610/tonne in the previous week.

 

In southern Guangdong province, fourth-grade soy oil was at RMB8,400 to RMB8,550/tonne, compared with RMB8,400 to RMB8,600/tonne last week.

 

In the eastern city of Dalian, fourth-grade soy oil was at RMB8,900 to RMB9,100/tonne, compared with RMB8,700 to RMB9,500/tonne a week earlier.

 

Soy meal prices were higher on reduced supply and rising prices of imported soybeans.

 

In Jiangsu province, prices of average-protein soy meal were RMB2,520 to RMB2,700/tonne, higher than RMB2,420 to RMB2,550/tonne a week earlier.

 

In Guangdong province, prices of average-protein soy meal were RMB2,500 to RMB2,600/tonne, up from RMB2,420 to RMB2,500/tonne a week earlier.

 

The feedmeal demand of poultry and aquatic products increased significantly, although feedmeal demand for pigs remained at low levels, CNGOIC said, adding that soy meal demand will continue to rise in coming weeks.