October 25, 2011
China will auction 300,000 tonnes of soy from state reserves Tuesday (Oct 25), according to the China National Grain & Oils Information Centre.
This will be the 22th batch of state soy reserves put under the hammer since December of last year. The government only sold out 16,100 tonnes of the total 6.27 million tonnes of soy from reserves at the preceding auctions.
Currently, China is trying to sell reserves to give room for new crops. However, as the soy market has been fluctuating recently and the floor price at the auction has a small advantage over the purchase price of new soy, the new auction has a high possibility to fail again, analysts said.