October 1, 2009
Weak response to China's weekly state soy sales
China's sales of soy at its weekly state reserve auctions were weak, with no crushers interested in buying the subsidised soy in anticipation of lower prices ahead of the upcoming harvest.
Overall, the state authority sold 2,000 tonnes of soy out of 503,500 tonnes on offer on Wednesday (Sep 30) at a bidding price of RMB3,750 (US$549.3) per tonne, which fell well below the 14,800 tonnes sold last week.
Crushers in Heilongjiang province, the country's largest soy growing area, were not interested in the state soy, as the subsidy of RMB210 per tonne offered by the Chinese government is unable to offset the transportation and storage costs. In all, the province has about two million tonnes of state soy.
Meanwhile, crushers in the province are also anticipating a lower price as the domestic harvest will be available next month.
Sinograin, the government buying agency, bought more than six million tonnes of last year's soy harvest for state reserves at RMB3,600 per tonne.
|
Date |
Volume sold
(tonnes) |
Highest price
(RMB/tonne) |
Volume offered
(tonnes) |
|
Sep 30 |
2,000 |
3,750 |
500,000 |
|
Sep 23 |
14,800 |
3,790 |
500,000 |
|
Sep 16 |
15,500 |
3,790 |
500,000 |
|
Sep 9 |
29,300 |
3,880 |
500,000 |
|
Sep 2 |
10,600 |
3,820 |
500,000 |
|
Aug 26 |
9,600 |
3,750 |
500,000 |
|
Aug 19 |
400 |
3,750 |
500,000 |
|
Aug 12 |
15,000 |
3,800 |
500,000 |
|
Aug 5 |
4,900 |
3,790 |
500,000 |
|
Jul 29 |
No bidders |
500,000 | |
|
Jul 23 |
No bidders |
500,000 | |
|
Total |
102,100 |
　 |
5,500,000 |
| US$1=RMB6.827 (Oct 1) | |||
