November 26, 2008

North-east China plans to up 1.5 million tonnes national reserves in the main soy production base so as to raise farmers' morale. 

China plans to buy 1.5 million tonnes of soy in three provinces in north-east China,namely, Heilongiiang, Jilin, and Liaoning, at RMB3.7 a kilogramme.

Following this, the price of soy futures at the Dalian Commodity Exchange has surged for several days. Still, no official news about the purchase has been released by far.

The National Development and Reform Commission of China in October announced the purchase of 1.5 million tonnes of soy at RMB3.7 a kilogramme in north-east China, including 230,000 tonnes in Inner Mongolia Autonomous Region, 60,000 tonnes in Liaoning, 210,000 tonnes in Jilin, and 1 million tonnes in Heilongjiang. However, the move is believed to not stabilise the domestic soy price, as it is only a small amount of purchase.

US$1=RMB6.828 (Nov 25)