September 14, 2007

 

China soy prices stable; market quiet amid low stocks

 

 

Soy prices in China's major producing regions were little changed in the week to Friday (Sep 14), while trade remained quiet on a lack of fresh supply.

 

In Heilongjiang province, China's largest soy -growing region, prices of average-quality soy were around RMB3,400 (US$452.64) a tonne, little changed from a week earlier.

 

The market would remain stable before October, as there is little domestically produced soy left, said an analyst in Beijing.

 

Traders said there were also some new harvest soy quoted at RMB3,200/tonne (US$426.01) on the market in the week, but the total amount was still small, and large supply would not come in until October.

 

Meanwhile, soy imports were sold at around RMB3,800 (US$505.89 ) at major ports in China.

 

Given strong demand for soymeal and soyoil, the high prices of (soy) products ensured decent margins for crushers, said the analyst.

 

Benchmark soyoil prices in Heilongjiang province remained little changed in the week around RMB8,600/tonne. (US$1141.91)

 

Soymeal prices were at RMB3,021/tonne (US$402.18 ) on average in the week to Friday, up RMB156 (US$20.77) from a week ago.

 

"Therefore, even if the new supply is coming in October, prices may not be weighed on heavily, given the downstream demand," said the analyst.