October 27, 2006
China's soyoil and soymeal prices jump
Prices of soyoil and soymeal in China jumped this week, following gains on the Chicago Board of Trade over the past three weeks.
Prices of soymeal were quoted around RMB1,960-RMB2,050 (US$248.4-US$259.8) a tonne in Heilongjiang province, up RMB50-RMB60 from a week earlier, said an analyst at China National Grains & Oils Information Centre, a major government-backed think tank.
"Although fundamentals were little changed, recent gains in soy futures on CBOT have fueled rises in prices of soymeal and soyoil," he said.
Heilongjiang is a major soy-growing province in China.
In the southern provinces, soy prices were quoted around RMB2,150-RMB2,200/tonne (US$272.5-US$278.8), RMB40 higher than last week, according to Tu Xuan, an analyst at Shanghai JC Intelligence Co.
"Prices of imported soys increased as a result of the CBOT rises since the beginning of this month, providing support to soymeal prices," she said.
In China, most soymeal and soyoil is made by crushing imported soys.
Prices of imported soys at major Chinese ports were quoted around RMB2,700-RMB2,750/tonne(US$342.1-US$348.5), up by around RMB100 from a week earlier.
Prices of soyoil rose as well, along with those of soymeal.
Soyoil prices were quoted at RMB6,100-RMB6,150/tonne (US$773.0-US$779.3) in Heilongjiang, up over RMB100 from last week.
In Fujian province, a major consuming area in southern China, prices of soyoil climbed RMB300 to around RMB 6,300/tonne (US$798.3).
"In addition to CBOT gains, demand for feed is expected to rise with livestock farmers increasing production lately, also contributing to the bullishness on the market," Tu added.
In January-to-September, China's soy imports hit 21.1 million tonnes, up 8.8 percent on-year, according to customs data.