December 3, 2007

 

China farmers more willing to sell with mixed soy prices
 

 

Soy prices in China were mixed in the week to Friday (November 30, 2007), with farmers and traders more willing to sell.

 

Soy prices in Jiamusi city in Heilongjiang province, a major soy producing region, were between RMB4,240-RMB4,260 a tonne, compared with RMB4,220-RMB4,240 a week ago.

 

Soy prices in Hailun in Heilongjiang province were at RMB4,320-RMB4,360/tonne, unchanged from the previous week.

 

Dwindling freight fees, increasing soy imports and rumors of a possible soy tax cut have put pressure on the market.

 

Soy processing plants stayed on sidelines, and demand for soymeal could fall after feedmeal plants bought to build up their stocks recently, said Heilongjiang Jiusan Oil And Fat Co.

 

China purchased at least 2.7 million tonnes of US soys during the first three weeks of November, most of which will be used to fill state reserves, said the China National Grain and Oils Information Center.

 

Soyoil prices were mostly stable despite tight supply, as the market was concerned over more price-control measures by the government after a recent surge in soyoil prices.

 

In Shandong province, the price of fourth-grade soyoil was at RMB10,250-RMB10,300/tonne, down from RMB10,270-RMB10,320/tonne the previous week.

 

In southern Guangdong province, fourth-grade soyoil was around RMB9,950/tonne, compared with RMB9,950-RMB10,000/tonne a week ago.

 

Among a recent series of measures, China will release at least 2 million tonnes of corn into non-producing regions to curb surging feedmeal prices, and it has been increasing the volume of wheat it sells during its weekly auctions.

 

Soymeal prices were mostly stable, with prices falling in some regions.

 

In Jiangsu province, prices of average-protein soymeal were between RMB3,750-RMB3,780/tonne, compared with RMB3,800 a week earlier.

 

In Guangdong province, prices of average-protein soymeal were at RMB3,700-RMB3,780/tonne, compared with RMB3,700-RMB3,750/tonne.

 

Domestic soymeal futures were lower this week, and traders stayed on sidelines on expectations of falling demand.