State intervention maintains China's soy prices

Soy prices in China's major producing areas were mostly stable in the week to Friday, although prices were higher in some areas due to farmers' reluctance to sell.

Prices in Harbin in Heilongjiang province were RMB3,700-3,820 a metric ton compared with RMB3,740-RMB3,800 a week ago.

Prices in Jiamusi in the same province were RMB3,640-3,760/ton, up from RMB3,520-RMB3,720/ton.

Some farmers are still reluctant to sell as they expect higher prices. Soy purchases by the government and crushers, as well as high import prices, have helped support local prices.

Rising soy oil prices also boosted demand for the crop.

Soy oil prices were mixed, with prices rising early this week and paring gains towards the end. The market was abuzz with reports of the government planning to release 200,000 tonnes of soy oil and 300,000 tonnes of rapeseed oil, which kept prices in check.

Soy meal prices were mixed. In Rizhao in Shandong province, prices were RMB3,720-3,750/ton, compared with RMB3,760/ton a week ago.

The prices were around RMB3,520/ton in Dalian in Liaoning province, compared with RMB3,500-3,550/ton.

RMB1=US$0.1464 (Dec 21)