China soy prices stable; government buying within expectations

 

 

Soy prices in China's major producing areas stayed flat in the week to Friday, stabilising since the government's announcement last week of a purchase policy that was in line with market expectations.

 

Soy prices in Suihua, in the major producing province of Heilongjiang, were RMB3,640-RMB3,720 a tonne, unchanged from a week ago.

 

In Jiamusi, also in Heilongjiang province, prices were RMB3,580-RMB3,620/tonne, also unchanged.

 

"Prices haven't changed much basically since the stockpile policy went out," said Xu Wenjie, a soy analyst with Tianma Futures.

 

China started buying soy from northeast major producing areas from Tuesday at RMB3,740/tonne, higher than RMB3,700/tonne it offered for last year's crop.

 

Soyoil prices in Shenyang in Liaoning province rose to RMB7,650-RMB7,700/tonne in the week to Friday, from RMB7,200-RMB7,250/tonne a week earlier.

 

Soyoil prices have been rising amid expectations of a rise in demand ahead of the year-end holidays.

 

Xu said soyoil cash prices have also gained upside from counterpart futures rallying on the Chicago Board of Trade, which in turn pushed up Dalian Commodity Exchange soyoil.

 

Soymeal prices in Rizhao in Shandong province were RMB3,760/tonne, rising slightly from RMB3,730/tonne a week ago.

 

US$1 = RMB6.8269 (Dec 4)