June 20, 2011

 

China's soy import prices may dip in June
 

 

Soy import prices are likely to fall in June, though crushing margins for foreign soy are likely to stay in negative territory, the state-backed China National Grain and Oil Information Centre (CNGOIC) said Friday (Jun 17).

 

Soy import prices reached their highest levels in two-and-a-half years in March around US$593/tonne, up from US$558/tonne in January.

 

However, prices have begun to erode as negative margins prompted Chinese soy crushers to suspend output and global commodities softened in the second quarter. Free-on-board soy import prices eased to US$581/tonne in May from US$585/tonne in April.

 

Soy crushers were still seeing losses of around RMB200 (US$31)/tonne on foreign soy in May, though the negative margin has begun to shrink, the agency said. Crushing margins for domestic soy began to enter positive territory around mid-May.

 

The CNGOIC attributed still-rising soy imports this year to previously booked cargoes.

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