July 17, 2009
China maintains strong soy imports with purchase of cheap US crop
A cheap new US soy crop has prompted China, the world's largest soy importer, to continue its robust purchases over the past week, according to an official survey by the China National Grain and Oils Information Centre (CNGOIC).
The cheaper soy imports due for arrival in October and November were priced at RMB3,500 (US$512.3) per tonne, which was 5.4 percent lower than the price Beijing paid to farmers to stockpile domestic soy last year, the centre added.
Traders told Reuters the government would sell some of its state reserves next week but crushers might not be interested as the government would sell at a higher price.
Meanwhile, the soyoil market picked up with crushers raising their prices to make up for their losses due to the earlier negative crushing margin. Soyoil prices are expected to remain at current levels with minimal price fall while demand could pick up in coming weeks, the CNGOIC said.
China's soymeal market remained stable as feed mills were actively stockpiling their inventories. Soymeal supplies are seen ample in the near term due to the substantial soy imports in July.
As for the corn market, it was weakened this week in anticipation of the government's sales of state reserves. The tightening of supplies supported corn prices to stay high.
Lastly, the sluggish sales of flour softened the wheat market outlook.
|
　 |
Jul 15 |
Jul 8 |
Jul 1 |
|
Soy |
48.80 |
47.50 |
46.90 |
|
Soymeal |
45.20 |
44.50 |
47.50 |
|
Soyoil |
45.80 |
42.50 |
45.80 |
|
Corn |
54.80 |
55.20 |
54.30 |
|
Wheat |
50.00 |
52.40 |
52.90 |
Notes: A reading below 50.0 indicates participants are bearish, a reading of 50.0 indicates they are neutral and a reading above 50.0 indicates they are bullish. The indexes are based on data collected from 400 market participants, including storage firms, oilseed processors and traders in China's 17 major producing and consuming provinces.
