December 11, 2009
China soy prices up as crushers eager to buy
Soy prices in China's major producing areas were higher in the week to Friday, as crushers were active in purchases while many farmers were reluctant to sell.
Soy prices in Harbin in Heilongjiang province were between RMB3,740-RMB3,800 a tonne compared with RMB3,740-RMB3,780/tonne a week ago.
Soy prices in Binxi in the same province were around RMB3,820/tonne, up RMB20-RMB50.
Processing plants were eager to buy as the government provides a subsidy of RMB160/tonne for purchases at the minimum price of RMB3,740/tonne.
Prices of imported soy at Chinese ports were at RMB3,950-RMB4,000/tonne, helping to support local soy prices, said Jiusan Oil and Fat Co. in a note.
Snowfall in northeast areas has hampered transportation of the crop, reducing supply to the market and pushing prices higher.
Higher global soy prices and the Chinese government's soy purchase subsidies will make local soy more attractive than their global counterparts in early 2010, the China National Grain and Oils Information Centre said Thursday (Dec 10).
Soy prices are likely to rise further in the near term, although more imports in the coming months will help curb any price rise, said analysts.
China's soy imports in December and January are likely to be 4.6 million to 4.8 million tonnes and four million to 4.5 million tonnes, according to estimates from CNGOIC, compared with a monthly average of 3.5 million tonnes in the first 10 months of this year.
Soyoil prices were higher on rising futures and higher demand ahead of year-end holidays.
First grade soyoil prices in Harbin were at RMB7,850-RMB7,900/tonne, up from RMB7,700-RMB7,800/tonne a week ago.
Prices were at RMB8,250-RMB8,350/tonne in Jiangsu province, compared with RMB8,050-RMB8,100/tonne a week earlier.
Soymeal prices were mixed.
Higher soy imports in the coming months have raised concerns over falling soymeal prices, which have risen a lot recently, said analysts.
US$1 = RMB6.8286 (Dec 11)
