October 22, 2007

 

China soy prices up on rising demand despite harvest

 

 

China's soy prices continued to rise in the week to Friday (October 19) due to large amount of demand, despite the increased supply in the harvest season.

 

In Jiamusi city in the Heilongjiang province, China's largest soy producing region, the prices of domestic soy were at RMB3,580 to RMB3,600 a tonne, up from RMB3,540 to RMB3,560/tonne a week earlier.

 

In Suihua city in the province, soy prices were between RMB3,700 to RMB3,770/tonne, unchanged from a week before.

 

High Chicago Board of Trade (CBOT) prices and rising freight fees helped to curb demand for imported soy.

 

Rising demand for iron ore, coal and the busy shipments ahead of the Christmas have pushed soy freight fees from US to Chinese ports to a historical high of US$124/tonne recently, according to data from Shanghai JCI, a grain consultancy firm.

 

Dwindling soyoil stocks, as some oil processing plants suspend production, along with record high crude oil prices, helped to drive up soyoil prices.

 

In Shandong province, fourth-grade soyoil prices were at RMB8,730 to RMB8,850/tonne, compared with RMB8,620 to RMB8,750/tonne the previous week.

 

In southern Guangdong province, fourth-grade soyoil was around RMB8,700/tonne, higher than RMB8,500 to RMB8,650/tonne a week ago.

 

In the eastern city of Dalian, fourth-grade soyoil was up at RMB8,900 to RMB9,000/tonne from RMB8,750 to RMB8,850/tonne a week earlier.

 

Looking forward, strong soy prices and higher demand for vegetable oil will limit any fall in soyoil prices, said China National Grain and Oils Information Centre in its weekly report.

 

The lack of soy supply and rising soymeal prices at CBOT pushed soymeal prices higher.

 

In Jiangsu province, prices of average-protein soymeal were at RMB3,350 to RMB3,420/tonne, slightly higher than RMB3,260 to RMB3,400/ton a week earlier.

 

In Guangdong province, prices of average-protein soymeal were at RMB3,350 to RMB3,380/tonne, compared with RMB3,250 to RMB3,360/tonne.

 

China imported 1.89 million tonnes of soy in September, down from 2.93 million tonnes in August, data provided by the customs department showed.