Soy prices in China's major producing areas rose in the week to Friday (Nov 4), as crushers and traders continued to raise bid prices amid domestic output decline, but trade was thin as farmers were reluctant to sell.
Prices in Heilongjiang, the top producing area that accounts for more than 40% of China's total output, were RMB4,100-4,200 (US$646-662)/tonne, up about 2% from a week ago.
The hog-to-corn price ratio, an indicator of returns from hog production, declined for the sixth week in a row to 7.45 as of October 26, data from the National Development and Reform Commission showed.
Pork prices have fallen 4.6% from a record high since mid-September, the Ministry of Commerce said.
"Some panic selling of pigs by farmers boosted market supply, even though the fourth quarter is the peak pork consumption period in China," analysts said.
Some feed mills and traders seem to have turned bearish, as soymeal demand is not as good as they expected earlier, pressuring soy prices.
Traders and feed mills are maintaining low soymeal inventories and downside risks still exist, traders said.