August 2, 2008

 

China soy prices down after tumble in futures

 
 

Soy prices in China's major producing regions were lower in the week to Friday, tracking a tumble in futures on the Dalian Commodity Exchange over the same period.

 

Soy prices in Harbin city in Heilongjiang province, the biggest producing province, were around RMB5,000-RMB5,040 a tonne compared with RMB5,300/tonne a week ago.

 

Prices in Jiamusi in the same province were between RMB4,900-RMB5,000/tonne, down from RMB5,200/tonne.

 

Soy processing plants are making less profits or are even registering losses, which has reduced their demand for soy, said analysts.

 

The loss for processing domestic soy was around RMB253/tonne last week, while for processing imported soys, it was around RMB139/tonne, according to data from Heilongjiang Jiusan Oil & Fat Co.

 

Soyoil prices were also sharply lower on the big fall in futures prices and weak end-user demand.

 

First-grade soyoil prices in Rizhao city in Shandong province were around RMB10,500/tonne, down from RMB10,850-RMB11,200/tonne a week earlier.

 

First-grade soyoil prices were between RMB10,200-RMB10,500/tonne in Dongguan city in Guangdong province compared with RMB10,700-RMB11,200/tonne.

 

The surge in soy and vegetable oil imports in the first half of this year far exceeded the increase in demand, and the market may see further losses, said Huang Xiao, an analyst at Capital Futures.

 

Soymeal prices were lower on supply pressure from soy.

 

Soymeal prices in Rizhao were between RMB4,170-RMB4,220/tonne, down from RMB4,260-RMB4,330/tonne in the previous week.

 

Soymeal prices in Dongguan city were at RMB4,150-RMB4,200/tonne compared with RMB4,250-RMB4,300/tonne.

 

Soy imports in the July-September period are expected to remain high due to the fulfillment of previous orders, while demand for soymeal is sluggish, said analysts.
   

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