July 9, 2007

 

China soybean price stable; soyoil, soymeal rise on CBOT

 

 

Soybean prices in China's major producing regions were stable in the week to Friday (July 6), supported by the surge in soybean futures prices at Chicago Board of Trade (CBOT).

 

In Harbin, the capital of Heilongjiang province, China's largest soybean growing region, prices of average quality soybeans were at RMB3,020 to RMB3,040 a metric tonne, compared with RMB2,900 to RMB3,040 a week earlier.

 

Prices in Jiamusi City in the northeastern part of the province were between RMB2,900 to RMB2,960/tonne, mostly stable from RMB2,860 to RMB2,960/tonne a week earlier.

 

Soymeal prices in some areas in northeast China started to rise while the purchasing amount increased somewhat, and soybean prices could rise slightly if the situation continues, said alibaba.com, an agricultural information provider.

 

But the demand for imported soybean continued to decline due to ample stocks at Chinese ports and low processing profits, said China National Grain and Oils Information Centre Friday (July 6).

 

Soy oil prices rose on rising palm oil futures prices in Malaysia and soy oil futures prices at CBOT.

 

In Shandong province, fourth-grade soy oil prices were at RMB7,900-RMB8,000/tonne, higher than RMB7,700-RMB7,900/tonne in the previous week.

 

In southern Guangdong province, fourth-grade soy oil was at RMB7,850/ton, compared with RMB7,650-RMB7,850/tonne last week.

 

In the eastern city of Dalian, fourth-grade soy oil was at RMB8,000-RMB8,100/tonne, compared with RMB7,900-RMB8,100/tonne a week earlier.

 

Soymeal prices surged, supported by rising soybean prices at CBOT, but the volume traded was light.

 

In Jiangsu province, prices of average-protein soymeal were at RMB2,400 to RMB2,450/tonne, sharply up from RMB2,260 to RMB2,280/tonne a week earlier.

 

In Guangdong province, prices of average-protein soymeal were at RMB2,340 to RMB2,450/tonne, much higher than RMB2,250 to RMB2,280/tonne a week earlier.

 

But ample stocks and sluggish demand from the feedmeal sector put pressure on soymeal prices.

 

Soymeal prices at the CBOT will have a large impact on domestic cash prices in the short term, said traders.