August 20, 2007

China soy market bullish as demand rises

China's soy product markets are expected to stay bullish in coming weeks on seasonal strong demand and expected lower imports, a survey by China National Grain and Oils Information Centre showed on Friday ( Aug 17).

Grain traders' outlook for the soy market improved for a fourth week on rising domestic soymeal demand and crushers are expected to import more soy after the expected low levels in August and September.

The index for the soyoil price outlook turned strong as higher demand for soyoil is seen ahead of China's National Day on October 1 and the Chinese mid-autumn festival in late September. Soyoil is used to produce traditional Chinese foods such as moon cakes.

Meal prices are expected to rise as demand from poultry and fish breeders remained strong and feed demand from pig breeders rises on a strong recovery.