China soy prices down ahead of harvest
Soy prices in China's major producing areas declined in the week to Friday on expectation of higher supplies as harvesting for the crop begins later this month.
Soy prices in Beian and Jiamusi in Heilongjiang, the biggest producing province, fell to around RMB 3,700 a tonne compared with RMB 4,000/tonne a week ago.
Trading was very light as participants bet on a further fall in prices.
With the harvest season nearing, possibility of the crop getting affected by bad weather has diminished, they said.
Still, higher input costs this year, following the surge in oil prices, will limit any major decline in soybean prices. At the same time, likelihood of increased supplies will prevent prices from rising, said analysts.
Soyoil prices were lower, along with the tumble in futures contracts of vegetable oil and crude oil.
Buyers remained cautious as soyoil processing plants speeded up sales to cash in before a further drop, said Heilongjiang Jiusan Oil and Fat Co. in its note. Vegetable oil demand is likely to remain weak in the near term, the note said.
Soymeal prices were slightly lower.
Soymeal prices in Rizhao were in a RMB 3,710- RMB 3,780/ton range, compared with RMB 3,780-RMB 3,850/ton a week ago.
In Dongguan city, they ranged between RMB3,700- RMB3,800/ton, lower than RMB3,800-RMB3,850/ton a week ago.
(RMB1 = US$0.1462)