September 21, 2009
China soy prices slightly up ahead of new harvest season
Soy prices in China's major producing areas were slightly higher in the week to Friday (September 18) due to a lack of soy supply as the new harvesting season has yet to begin.
Soy prices in Harbin city in Heilongjiang, the country's largest producer, were RMB3,600 (US$527.18) to RMB3,660 (US$535.97) a tonne, slightly up from RMB3,580 to RMB3,640/tonne a week earlier.
In Jiamusi, also in Heilongjiang province, prices were around RMB3,600/tonne compared with RMB3,540 to RMB3,580/ton a week ago.
Little was sold during the government's weekly soy auctions and processors were waiting for government subsidies as auction prices were too high for purchases to be profitable.
The government has sold about 2 percent of the 4 million tonnes of state soy reserves it wants to sell, the China Grain and Oil Information Centre said in a statement Wednesday.
Analysts said soy cash prices won't likely soar in the coming week despite a Heilongjiang frost warning Thursday.
"Weather will only affect planting and harvesting in the future, and won't change the current situation, so the spot market will remain relatively stable with quiet trading," as farmers wait for the new harvest season to commence, said Xu Wenjie, an analyst with Tianma Futures.
US$1 = RMB6.83 (Sep 21)
