November 9, 2010

China's Q4 soymeal demand stays strong

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, according to reports. Rising pork prices should stimulate farmers' enthusiasm to raise more pigs.

The Chinese government has set the minimum purchasing price of 2010 soy at RMB3.8 (US$0.57)/kg, up RMB0.06 (US$0.01)/kg from last year. It conducts soy purchases for state reserves from November 1, 2010 to April 30, 2011.