China to stockpile new soy in December; Dalian up

China will start stockpiling the new soy harvest in December, buying at 1 percent higher than last year's price, dealers said on Thursday (November 26), citing a government document.

The price, at RMB3,740 (US$548) per tonne, is in line with an earlier Reuters report.

Traders said purchases will last until April 20, according to traders who based their statement by top planning body the National Development and Reform Commission and the State Administration of Grain.

The government was also likely to offer RMB160 per tonne to some local crushers in northeastern growing areas, which are willing to pay prices at between RMB3,740 to RMB3,840 yuan per tonne, they said.

The policy has supported Dalian futures with the most-traded September 2010 contract, at RMB3,944 (US$580) per tonne, up RMB58 from Wednesday, by 0222 GMT.

Liang Yong, an analyst with Galaxy Futures said the policy has provided a chance for investors to drive up prices. Dalian is also supported by rising prices on the Chicago Board of Trade, which hit a 12-week high this week.

US$1 = RMB6.82 (Nov 27)