August 31, 2012

China crushers acquire 401,419 tonnes of soy from the government's weekly auction.

The increased interest in state reserves comes as crushers take advantage of lower prices at home, after US prices rallied due to a raging drought. The domestic market is also expected to see a shortage in the coming peak consumption months.

Crushers in Heilongjiang and Inner Mongolia bought the soy at an average price of CNY4,583 (US$701) and CNY4,449 (US$680.50) per tonne respectively, according to bidding results. In Jilin, the average price on August 30 was CNY4,604 (US$704.20) per tonne.

The most active soy futures contract on the Dalian Commodity Exchange closed at CNY4,916 (US$774) a tonne on August 30.