August 23, 2010

Chinese soy prices up on alternative grain shortfall

Soy prices in China's major producing areas were higher in the week to Friday (Aug 20), supported by relative shortages in other grains.

Soy prices in the major producing province of Heilongjiang rose to levels as high as RMB3,660 (US$538) a tonne, up from RMB3,380-3,500 (US$497-$515)/tonne a week earlier.

However, the level of demand may not be sustained as trading houses continued to be concerned about large volumes of imports and a potential bumper harvest poised to enter the market.

Soyoil and soymeal prices were higher as feedmeal demand rose ahead of two major Chinese festivals in the autumn.

Fourth-grade soyoil prices in Jiamusi in Heilongjiang province were around RMB7,550-7,600 (US$1,111-$1,118)/tonne, up RMB100 (US$14.71) from last week.

Soymeal prices in Jiamusi were around RMB3,170-3,250 (US$466-$478)/tonne, up from RMB3,100 (US$456)/tonne a week earlier.