October 13, 2008
China's soy imports to remain strong
China's purchases of soy are expected to remain strong in the weeks ahead as lower shipping prices help spur deals by the world's largest buyer, a survey by an official think-tank showed on Friday, 10 October 2008.
The cost of imported soy for November shipment were lower than domestic soy prices, helped by the lowest freight rates in two years and low prices on the Chicago Board of Trade, according to the survey by the official China National Grain and Oils Information Centre (CNGOIC).
The center said that little room is seen for prices to fall further as anticipated by most buyers and imports are likely to keep at a high level in coming weeks.
Soy oil outlook stayed bearish as demand has been declining sharply after the Golden Week holidays. Trading was thin since buyers were expecting even cheaper prices in coming weeks.
Soymeal also turned bearish and feed mills were holding back on making purchases in anticipation of lower prices.
Expectations for a bumper domestic corn harvest have also pressured prices.
The centre gave the following index data.
|
Dates |
Thursday, 9 Oct'08 |
Wednesday,24 Sept'08 |
Wednesday,17 Sept'08 |
|
Soy |
50.6 |
49.4 |
44.4 |
|
Soy meal |
49.5 |
54 |
47.5 |
|
Soy oil |
41.7 |
46.7 |
43.3 |
|
Corn |
42.6 |
45.9 |
46.8 |
|
Wheat |
57.1 |
57.1 |
53.3 |
|
Rice |
56.3 |
66.9 |
69.4 |
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.
