August 10, 2011

China failed to sell any of the 300,414 tonnes of soy reserves it offered at an auction Tuesday (Aug 9) after the failure two weeks ago, according to the National Grain & Oil Trade Centre said.

The floor price was set at RMB3,920 (US$611)/tonne, almost losing advantage over purchase prices of RMB3,960 (US$617)/tonne in major producing areas as well as import prices of around RMB4,100 (US$639)/tonne.

This is the 17th batch of state soy reserves put under the hammer since December of last year. However, the government only sold out 11,100 tonnes of the about 5.06 million tonnes of soy from reserves offered at these auctions.

As edible oil producing enterprises and traders are now busy in restocking for the approaching Mid-Autumn Festival around the middle of September, soy demand is expected to recover in the following two months.