November 30, 2010

China sets rules for soy reserves sale 

The National Grain and Oil Trade Centre (NGOC) plans to release 300,000 tonnes of soy on to the market on December 3, while setting strict rules for the auction.

The cumulative total that can be purchased by buyers in a single month cannot exceed the total that they could process in a 30-day period.

In addition, the buyers must put on to the market the processed soyoil within a 30-day period from the date of purchase.

NGOC aims to increase market supply with the requirements.

Based on an extraction rate of 16%, the 300,000 tonnes of soy will result in 48,000 tonnes of soyoil output.

The current scale of the domestic edible oil market is close to 30 million tonnes.

The NGOC released 100,000 tonnes of rapeseed oil on to the market on November 26 to stabilise the market price of edible oil.