November 23, 2011
China's soy auction draws no bids
China failed to sell out any of the 309,859 tonnes of reserve soy it offered at an auction on Tuesday (Nov 22), according to the China National Grain and Oils Information Centre.
This was the 24th batch of state soy reserves put under the hammer since December of last year. However, the government only sold out 16,100 tonnes of the total 7.2 million tonnes of soy from reserves at those auctions.
The failure is within expectations as soyoil crushing mills and traders are now paying attention to new soy instead of the reserve soy. Currently, the new soy market sees slim trading amid buyers' wait-and-see attitude, expecting the upcoming state stockpiling policy.
Analysts said that domestic soy prices are difficult to rise sharply in the backdrop of soft international market as well as uncertainties in Europe and US economies.