November 23, 2009

 

China soy prices stable; supported by rise in futures

Soy prices in China's major producing areas were mostly stable in the week to Friday (November 20), supported by gains in futures markets.

 

Soy prices in Harbin in Heilongjiang province were between RMB3,560 (US$515.46) to RMB3,720 (US$544.75) a tonne, stable from a week earlier.

 

In Jiamusi, in the same province, prices were at RMB3,520 to RMB3,640/tonne, compared with RMB3,520 to RMB3,660/tonne.

 

Farmers were reluctant to sell the crop while waiting for a clear statement from the government on its purchase plans, and processors and traders also weren't active on the buy side.

 

Continued gains in soy futures traded on the Dalian Commodity Exchange and the Chicago Board of Trade helped to support cash prices, analysts said.

 

Rising soy import costs, due to shipping charges as reflected in a higher Baltic Dry Index, also pushed up local prices, said Xu Zhimou, an analyst with Ruida Futures Brokerage.

 

Soyoil prices were higher as consumption is heading into a peak season with the approach of the year-end holidays.

 

First grade soyoil prices in Zhangjiagang in Jiangsu province were between RMB7,600 and RMB7,800/tonne, up RMB150 to RMB200/tonne from a week earlier.

 

First grade soyoil prices in Dongguan in Guangdong province were at RMB7,500 to RMB7,700/tonne, up RMB100-RMB250/tonne.

 

Soymeal prices were higher, along with increases in futures prices and tight supply in some areas due to heavy snowfall in many parts of the country, which blocked transportation.

 

Soymeal prices in Jiangsu province were at RMB3,500 to RMB3,660/ton, compared with RMB3530 to RMB3,560/tonne.

US$1 = RMB6.82 (Nov 23)