August 20, 2012

As the average price falling from the record selling price hit two weeks earlier, China sold all 402,375 tonnes of state reserve soy that it offered in an auction Thursday (Aug 16).

The average price reached CNY4,275 (US$672) a tonne, down from the record price of CNY4,381 (US$689) on August 2, according to China National Grain & Oils Information Centre (CNGOIC). Prices for state reserve soy are around 8% lower than that of imported soy.

China is offering 400,000 tonnes every two weeks to increase supply, as imports in the next few months are expected to fall as high prices curb demand.

Since April, the government has sold 2.23 million tonnes of soy from state reserves, CNGOIC data showed.

Imports in August are expected to fall to 4.7 million tonnes from 5.87 million tonnes in July, while imports in September-October may total eight million tonnes, the CNGOIC said.