March 26, 2012

Wholesale soyoil prices of China's Beijing climb mildly

After a survey on a grain and oil wholesale market in Beijing, wholesale prices of soyoil in the city have been increased moderately, with prices of major cooking oil brands up 1-3%, the China Securities Journal reported on Friday (Mar 23).

The mild price rise mainly tracked persistent rebounds of soy and soyoil on the futures market, a market analyst said.

As expectations for soy output decline in South America aroused worries over global oilseeds supply, soy products on the CBOT have been going up since February and this has also helped push up soy futures prices on China's Dalian Commodity Exchange.

However, edible oil sales failed to rise significantly, which weakened traders' intention to increase stocks, the analyst noted.

According to a local grain sector portal www.cngrain.com, with decreasing market resources of soy in northeastern areas, a major soy production base in China, farmers tend to restrain sales to drive up prices. Meanwhile, affected by supply shortfall of raw materials, many domestic small and midsized processing enterprises have suspended production, further reducing supply capacity of soyoil.