China soy demand drops after price gain

Chinese soy buyers have completed purchases of US soy for shipment through March and now plan to hold off for a period following price rises on the Chicago Board of Trade (CBOT), an official survey showed on Friday (Nov 27).

China has bought more than 18 million tonnes of US soy, a large volume of which is scheduled to arrive in December and January, the China National Grain and Oils Information (CNGOIC) said.

The rise of soyoil and soymeal prices this week, both at the highest level of the year, has given strong crushing margins to soy plants. Feed mills with low inventories have been caught by the tight soymeal supply, prompting some to accept expensive soymeal offers.

Traders expected soyoil prices to remain strong while meal prices would weaken following the arrival of more soy cargoes.

Corn prices in heavy consuming areas of the South continued to rise this week after snow worsened the transport conditions. Supplies are likely to increase in December, but the market is expecting prices to remain stay.

The wheat market was supported by expectations for higher wheat prices in the coming month.