December 21, 2011
China failed to sell out any of the 300,000 tonnes of reserve soy it offered at an auction on Tuesday (Dec 20), the China National Grain and Oils Information Centre said.
The failure was within expectations as traders and soyoil crushers paid attention to new soy.
The state stockpiler China Grain Reserves Corporation has already started purchases of this year's new soy in major growing areas at the protective price of RMB4,000 (US$631)/tonne. Market analysts say that the stockpiling programme will help break the deadlock on the soy purchase market.
This was the 26th batch of state soy reserves put under the hammer since December of last year. However, the government only sold out 16,100 tonnes of the total 7.82 million tonnes of soy from reserves at those auctions.