December 24, 2007

 

China soy prices stable; soymeal prices down in some regions

 

 

Soy prices in China's major producing regions were mostly stable in the week to Friday (December 21, 2007), and some crushers in the northeast began to buy from farmers, traders and analysts said.

 

In Heilongjiang province, China's largest soy growing region, prices of average quality soy are around RMB4,240 a tonne, unchanged from a week earlier.

 

In some places, where crushers bought from farmers, prices rose slightly, and in some other places it fell a bit, said Bao Jing, a soy analyst with agricultural commodities consultancy Shanghai JC Intelligence Co.

 

"On the whole, I think prices are expected to remain stable," Bao said.

 

Soymeal prices fell in major consumption regions, such as Jiangsu and Guangdong provinces, given the crushers' high inventory level, but were little changed in other regions, traders said.

 

In Jiangsu province, prices of average-protein soymeal were around RMB3,640/tonne, down from RMB3,780-RMB3,800/tonne a week earlier.

 

Meanwhile, analysts said the railway transport limitations are lending support to prices of commodities.

 

The Chinese railway transport system usually struggles to meet a jump in demand ahead of the Chinese New Year, which falls in early February in 2008.

 

"The bull run of agricultural commodities has led to stockpiling by traders ahead of the Chinese New Year starting earlier compared with the past few years. As a result, prices may begin to be pressured from early January," said Li Honglei, an analyst at Nanhua Futures.

 

RMB1 = US$0.1358 (Dec. 24)