China soy prices higher as farmers reluctant to sell

 

 

China soy prices in major producing areas were higher in the week to Friday, as farmers were reluctant to sell in expectations of higher prices.

 

Soy prices in Harbin, in the major producing province of Heilongjiang were RMB3,660-RMB3,680 a tonne, up from RMB3,640-RMB3,660/tonne last week.

 

In Jiamusi, also in Heilongjiang, prices were RMB3,560-RMB3,580/tonne, up RMB20/tonne from a week ago.

 

Soy processing plants in Heilongjiang hiked bid for the crop as farmers rebuffed lower bids they didn't think reflected reduced supply of crops and higher input costs.

 

Farmers also held out on the back of expectations the government will buy at higher prices as part of its price support programme, details of which have yet to be announced.

 

Once the policy is announced, soy cash prices may face downward pressure, as the expected government purchase prices of between RMB3,740-RMB3,760/tonne are not much higher than the current prevailing prices of around RMB3,700/tonne, said Jiusan Oil and Fat Co. in a note.

 

Soyoil prices were mostly stable.

 

First-grade soyoil prices in Rizhao, Shandong province, were between RMB7,300 and RMB7,350/tonne compared with RMB7,200-RMB7,350/tonne a week earlier, and at RMB7,200-RMB7,250/tonne in Dongguan, Guangdong province, unchanged.

 

Soymeal prices were higher at the start of this week due to rising soy prices at the Chicago Board of Trade and tight local supply, but weak feedmeal demand pared gains.

 

Soymeal prices in Lianyungang in Jiangsu province were RMB3,600-RMB3,650/tonne, compared with RMB3,600-RMB3,640/tonne.

 

Soy imports are expected to rise fast in November and December after low imports in September and possibly October, easing tight supply and thus limiting the rise in soymeal prices, said Tianqi Futures.

 

US$1 = RMB6.8283 (Nov 6)