September 28, 2009

Chinese soy buyers have shifted their interests to January and February soy cargoes from the US and South American which are scheduled for shipment after March, an official survey showed.

Buyers were showing little interests in near-month cargoes after they procured 10.5 million tonnes of new US soy, said the China National Grain and Oils Information Centre (CNGOIC).

Meanwhile, the soyoil market remained weak due to the ample supplies. China's September soyoil imports reached 300,000 tonnes, up from 205,645 tonnes in August.

The soymeal market also picked up as demand rose with feed mills stocking up their inventories ahead of the week-long National Day holidays. Prices of soymeal were seen at the current levels as those of imported soy. Soy imports are likely to fall below two million tonnes in October, the lowest level in two years, according to the centre.

The corn market is expected to be weakened in the coming weeks as the new harvest is due next month while the government had increased the amount of corn to be sold at weekly auctions. On the other hand, the price increments of corn in the northern province of Shandong were easing as supplies from the new harvest were available to the market.

Wheat demand was not as robust as in the past two weeks due to a decline in flour sales but demand was seen to remain firm in the fourth quarter.