May 14, 2007

 

China's soybean prices stable; soyoil lower on weaker demand

 

 

Soybean prices in China's major producing regions were largely stable in the two weeks to Friday (May 11), but soyoil prices continued to fall on weaker demand.

 

In Heilongjiang province, China's largest soybean growing region, prices of average quality soybeans were RMB2,740-2,900 a tonne, mostly unchanged from RMB2,780-RMB2,900/tonne before the week-long Labour Day holiday.

 

The Chinese market was closed May 1 to May 7 for the holiday.

 

Trading was light as processing plants had bought enough soybeans before the holiday, but domestic supply was not enough, giving support to prices, said analysts.

 

Soyoil cash prices continued to fall as demand decreased due to increasing demand for palm oil, a cheaper substitute for soyoil, said Kang Bing, research manager at Jingyi Futures Co.

 

In northeast Dalian city, the prices of fourth-grade soyoil were at RMB7,350-7,450/tonne, slightly lower than RMB7,400-7,450/tonne before the Labour Day holiday.

 

In Shandong province, the prices of fourth-grade soyoil were at RMB7,200-7,300/tonne, lower than RMB7,400-7,450/tonne before the holiday break.

 

In southern Guangdong province, the prices of fourth-grade soyoil were at RMB7,150-7,250/tonne, lower than RMB7,250-7,400/tonne two weeks ago.

 

Soymeal prices were slightly higher due to the recovery of the feed meal sector. However, analysts said large demand is unlikely in the short term due to the slow pace of the sector's recovery.

 

In Jiangsu province, the prices of average protein soymeal were RMB2,280-2,300/tonne, higher than RMB2,230-2,280/tonne two weeks earlier.

 

In Guangdong province, the prices of average protein soymeal were RMB2,250-2,280/tonne, compared with RMB2,220-2,230/tonne before the holiday.