July 29, 2003
488,632 Tons of Soybeans From State Reserves Sold In Dalian Auction
China sold 488,632 metric tons of soybeans from state reserves in an auction held in Dalian city in northern Liaoning province Tuesday, with total revenue about RMB1.2 billion, said an official from the China Dalian Northern Cereal Exchange.
The exchange conducted the auction.
The prices were in the range of RMB2,420 to RMB2,560 a ton, traders in Dalian said.
The total amount of soybeans offered for sale was 500,000 tons, and the soybeans were from state-owned reserves in the northern Chinese provinces of Heilongjiang, Jilin, Liaoning and Inner Mongolia. The soybeans were harvested from 2000 to 2002, according to a notice from the exchange.
In the afternoon session of the auction, the floor price was raised to RMB2,420/ton from RMB2,350/ton in the morning session, said traders.
Of the total volume sold, close to 300,000 tons were auctioned off in the morning session.
The soybeans auctioned will not be allowed to be delivered to the Dalian Commodity Exchange against soybean futures contracts, said the official from the exchange.
In early July, the Chinese government said a total of 800,000 tons of soybeans from state reserves would be sold in auctions, in an effort to boost supply to meet the needs of local crushers.
No date or location has been set to sell the remaining soybeans, which total around 300,000 tons.