April 30, 2007

 

China soybean prices stable; soyoil loses rising momentum

 

 

Soybean prices in China's major producing regions were largely stable in the week to Friday (Apr 27), but soyoil lost its momentum to rise further on expectations of increased supply.

 

In Heilongjiang province, China's largest soybean growing region, prices of average quality soybeans were between RMB2,780-2,900 a tonne, versus RMB2,700-2,900/tonne a week ago.

 

"More demand from the feed sector and the pressure from large amounts of imported soybeans will keep soybean prices at stable levels," said Lu Xin, a trader at Cofco Futures Company.

 

Soyoil cash prices were stable to slightly lower, as demand for soyoil has likely peaked ahead of the week-long Labour Day holiday, traders said.

 

China's markets will be closed from May 1 through May 7 for the holiday.

 

Meanwhile, with the ongoing harvest of rapeseed, more supply of rapeoil is seen after the May holiday, putting pressure on soyoil prices, said Dong Liang, a trader at Shanghai Jiuheng Futures Company.

 

In northeast Dalian city, the prices of fourth-grade soyoil were at RMB7,400-7,450/tonne, lower than RMB7,400-7,600/tonne a week ago.

 

In Shandong province, the prices of fourth-grade soyoil were also at RMB7,400-7,450/tonne, lower than RMB7,400-7,600/tonne in the previous week.

 

In southern Guangdong province, the prices of fourth-grade soyoil were at RMB7,250-7,400/tonne, stable from RMB7,240-7,400/tonne a week earlier.

 

Soymeal cash prices were slightly lower on sluggish demand from the feed sector, but traders said there are signs pointing toward a recovery in the sector.

 

In Harbin, the provincial capital of Heilongjiang province, the prices of average protein soymeal were around RMB2,280-2,300/tonne, lower than around RMB2,320/tonne in the previous week.

 

In Jiangsu province, the prices of average protein soymeal were between RMB2,230-2,280/tonne, stable from RMB2,220-2,280/tonne a week earlier.

 

In Guangdong province, the prices of average protein soymeal were between RMB2,220-2,230/tonne, lower than RMB2,220-2,340/tonne a week earlier.