October 27, 2008
 
China Soymeal Weekly: Rising CBOT and government procurement push prices up (week ended Oct 24, 2008)

 

An eFeedLink Exclusive

 


Price summary

 

Prices were higher in most regions.

  

Weekly transacted prices of soymeal in China

Region

Protein content
(%)

Price as of Oct 17 (RMB/tonne)

Price as of Oct 24 (RMB/tonne)

Price change(RMB/tonne)

Heilongjiang

43

3,000

3,200

200

Liaoning

43

3,250

3,200

60

Hebei

43

3,220

3,280

60

Shandong

43

3,200

3,250

50

Jiangsu

43

3,180

3,200

20

Guangdong

43

3,080

3,100

20

Prices are representative and are for reference only.
RMB1=US$0.1462 (Oct 27)

 

 

Market analysis

 

Rise of CBOT prices and government intervention to sustain soy prices caused domestic soymeal prices to rise. However, soymeal price gains were marginal in the central and southern regions due to sluggish demand.


It is highly possible that the government will take measures to raise the prices of imported soy to sustain domestic soy prices.

 
 

Market forecast

 

In the near term, soymeal prices are expected to be in the range of RMB3,000-3,200/tonne. However, prices in some regions may fall below this level.


 

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