Soy prices in China's northeastern areas are lower than government purchase prices even though the central government has started to buy newly harvested soybeans in the major producing areas, said the Jilin province Grain Administration, Tuesday, 22 October 2008.
Soy cash prices in Jilin were between RMB3,540 and RMB3,660 a tonne Monday, 21 October 2008, compared to the government's purchase price of RMB3,700/tonne, said the administration in a statement published on its Web site.
The government began buying soy in the northeastern and northern producing areas to serve as state reserves Tuesday, 22 October 2008. It is expected to buy a total of 1.5 million tonnes.
A good soy harvest this year and a large volume of imported soy, bought earlier this year to hedge against expected higher prices have been weighing on domestic soy prices.
China imported 4.13 million tonnes of soy in September, more than double the 1.89 million tonnes imported a year earlier.