November 9, 2012
China sold 16% of soy reserve
About 16 % of China's soy reserves have been sold during an auction.
A total of 65,495 tonnes, or 16.5%, of the 397,204 tonnes on offer from the 2010 crop was sold, the National Grain & Oil Trade Centre said.
China, which buys about 60% of globally traded soy, has been selling reserves to help keep the market well supplied as stocks in the US decline due to the worst drought in decades.
At a bidding price of US$720 per tonne before cost and freight, the reserves are priced in the same range as domestic and imported soy, making them unattractive.
The government has so far sold 3.77 million tonnes of soy from its reserves.
