July 7, 2008

 

China soyoil market turns bullish on higher CBOT soy prices

   
  

China's soyoil demand is likely to increase in coming days in anticipation of higher prices due to the rising price of imported soy, a survey by an official think-tank showed on Friday (July 4, 2008).

 

CBOT soy prices hit a record high last week, leading to higher costs of the oilseed to China, the China National Grain and Oils Information Centre (CNGOIC) said.

 

Prices for August shipment arriving at Chinese ports were calculated at a record of more than 5,800 yuan (US$846.6) per tonne, it said in a report.

 

The high prices have dampened buying interest by crushers.

 

Crushers are expected to raise soyoil prices soon after they have stopped offering discounts aimed at reducing stocks, the centre said. Trading was seen to be active in coming weeks.

 

Record soymeal prices have restrained demand from feed mills, which have reduced production on negative earnings. Meal trading over the past month remained low and demand was unlikely to improve in coming days, it said.

 

The wheat outlook stayed bullish as demand from flour mills stayed strong. Prices for new wheat traded higher this year, and more deals were signed at weekly reserve sales by the government.

 

Corn market sentiment is up due to lower stocks at ports in the north. Lower inventories in the consuming south will continue to support prices there.

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