Crushers running on losses due to China's weak soy market
Crushers were taking heavy losses because prices of soyoil and soymeal have fallen about 8 percent over past two weeks, according to the China National Grain and Oils Information Centre (CNGOIC).
Domestic soy production was set to increase this year and with the new harvest available in October, crushers are waiting to see if prices would hold by keeping demand flat .
Trading activity in the soyoil market remained weak, and prices extended declines since merchants had ample supplies and refrained from adding to supplies.
Demand for soymeal was expected to continue to be low in coming weeks and prices dropped sharply this week, particularly in the northeast ahead of the domestic harvest.
The corn outlook ticked up but was still bearish. The grain reserve system in the northeast sold half of its planned 2.55 million tonnes of corn over past weeks to try to empty silos ahead of the new harvest and most of the corn has not been shipped to the south, according to the centre.
Corn prices stayed firm in the north, while prices rose in the major consuming area in the south. Sales from state reserves were expected to keep the market steady.
The wheat market outlook remained strong as a result of better sales from flour mills, marked by more active bidding at the weekly reserve sales.
Market sentiments
|
　 |
Sep 10 |
Sep 3 |
Aug 27 |
|
Soy |
46.30 |
46.90 |
46.30 |
|
Soymeal |
46.50 |
47.50 |
45.50 |
|
Soyoil |
45.00 |
45.80 |
45.00 |
|
Corn |
49.50 |
49.30 |
50.00 |
|
Wheat |
53.30 |
54.80 |
51.40 |
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.
