December 22, 2008
Larger soy processors in Northeast China's Heilongjiang province resumed soy buying for two days after stopping production due to hefty losses.
Heilongjiang Longjiangfu Oil & Fat Co., Ltd. resumed soy purchase last week and paid the highest market price in the province of RMB3.36(US$0.4908) per kilogramme for the products. The price was lower than the price that state-owned China Grain Reserves Corporation paid for soy bought for the state reserve.
Heilongjiang Longjiangfu Oil & Fat Co., Ltd. plans to buy 800 tonnes of soy and would need 1,000 tonnes of soy for production everyday.
And 10 other soy processing firms also resumed soy acquisition.
Up to 90 percent of Heilongjiang soyoil producers had previously suspended production, as soy processing business incurred heavy losses. However with the Chinese spring festival in January 2009 and the central government's efforts to boost the domestic agricultural industry, especially the grain processing sector, Chinese soyoil prices gradually stabilised.