December 24, 2007
Chinese traders expect soy markets to remain bullish
Chinese soy and soyoil traders expect the markets to stay bullish in coming days while the grains outlook remains bearish due to Beijing's large volume of reserve sales, according to a government think-tank.
China National Grain and Oils Information Centre (CNGOIC) reported that soy demand from crushers registers a rise, supported by strong soyoil prices, while crushers stayed active in purchases.
Soyoil demand picked up ahead of the holidays and active trading spurred prices to rise to their highest of the year.
Meanwhile, ample supplies pressured grain prices. The government this week offered an additional 4.5 million tonnes of wheat from reserves, but the wheat outlook ticked up as flour mills expected little room for prices to fall.
Corn prices continued its decline while farmers have increased sales. The market was anticipating stable demand after Beijing this week scrapped tax rebates on exports of corn and cornstarch. Beijing has also lowered the bidding prices for its auctions.
The centre gave the following index data:
|
|
Dec 19 |
Dec 12 |
5-Dec |
|
Soy |
52.5 |
51.9 |
48.8 |
|
Soyoil |
55.8 |
52.5 |
48.3 |
|
Soymeal |
45 |
48 |
46 |
|
Corn |
45.7 |
48.4 |
50.9 |
|
Wheat |
48.6 |
43.8 |
45.2 |
NOTE: The indexes are based on data collected from 400 market participants, including storage firms, oilseed processors and traders in China's 17 major producing and consuming provinces.
