October 25, 2010

China's soymeal demand to lift in Q4

China's demand for soymeal looks set to remain strong in the fourth quarter, backed by recovery of the livestock breeding industry.

From October 11 to 15 wholesale prices of pork in 36 major Chinese cities rose 0.4% from the previous week. Rising pork prices should stimulate farmers' enthusiasm to raise more pigs.

The purchase price of new soy is on rise as the country is about to complete the harvest of new soy. As of October 11, the country has harvested 89.3% of soy crops. The soy harvest in Northeast China's Heilongjiang, a major soy producing province, is more or less complete.

The Chinese government has set the minimum purchasing price of 2010 soy at RMB3.80 (US$0.57)/kg. It will conduct soy purchases for state reserves from November 1, 2010 to April 30, 2011.