September 1, 2008

 

China soy prices up a bit as processing plants fill stocks

    

 

Soy prices in China's major producing areas were slightly higher in the week to Friday (August 29) as processing plants started to refill their stocks.

 

Soy prices in Suihua in Heilongjiang, the biggest producing province, were around RMB4,200 a tonne, compared with RMB4,000-RMB4,200/tonne a week ago.

 

Prices in Jiamusi in the same province were around RMB4,100/tonne, up from RMB4,000/tonne.

 

But trading was light as farmers don't have much stock on hand and the market expects soy prices to fall a bit as the harvest season approaches.

 

A drought in some areas of Heilongjiang will affect soy and corn growth in the province, but total output this year will be higher than last year due to expanded acreage, said analysts.

 

The drought since early August "will definitely result in a unit yield decline (compared with normal years)," said a grain official in the Heilongjiang Grain Bureau Friday, who declined to be named.

 

Soyoil prices' highs this week were slightly lower than last week's on weak consumption and high stock levels.

 

Prices of first-grade soyoil in Rizhao city in Shandong province were in a range of RMB9,500-RMB9,720/tonne, compared with RMB8,850-RMB9,800/tonne a week ago.

 

In Dongguan city in Guangdong province, soyoil prices were in a range of RMB9,200-RMB9,600/tonne, compared with RMB8,600-RMB9,550/tonne a week ago.

 

In Fangchenggang in Guangxi province, they were between RMB9,300-RMB9,700/tonne, compared with RMB8,600-RMB9,800/tonne a week ago.

 

Some big traders cut the prices of vegetable oil sold at supermarkets despite the approach of the Mid-Autumn Festival and the National Day holiday.

 

Soymeal prices were slightly higher as processing plants raised their offering prices to offset the losses in soyoil sales.

 

Soymeal prices in Rizhao were at RMB4,120-RMB4,160/tonne, compared with RMB3,920-RMB4,150/tonne a week ago.

 

In Dongguan city, they were RMB4,080-RMB4,100/tonne, compared with RMB3,850-RMB4,050/tonne a week ago.

 

But soymeal prices started to fall late in the week as there were few positive factors to boost prices.