December 16, 2008
China soy demand robust amid pre-holiday low supply
China's soy demand in the coming weeks is seen to stay robust in view of lower supply of soyoil and soymeal as holidays draw near.
Meanwhile, demand for imported soy stayed high as prices were lower than domestic soy, the China National Grain and Oils Information Centre (CNGOIC) said in a report.
Imported soy for January shipments dropped to RMB2,800 (US$409.1) per tonne as compared with domestic prices, at around RMB3,700 per tonne offered by Beijing for state reserve purchases.
Soyoil was especially buoyant as traders accumulated inventories before the holidays, propping up domestic prices.
Soymeal on the other hand turned bullish as crushers in the south have cut down production, reducing soymeal supplies and supporting prices.
The centre gave the following index data.
|
Dec 10 |
Dec 3 |
Nov 26 | |
|
Soy |
53.8 |
52.5 |
51.9 |
|
Soymeal |
51.0 |
49.0 |
47.5 |
|
Soyoil |
55.0 |
53.3 |
52.5 |
|
Corn |
43.1 |
46.7 |
47.4 |
|
Wheat |
57.1 |
56.7 |
56.2 |
|
Rice |
50.0 |
50.6 |
51.3 |
A reading below 50.0 indicates that the market is bearish a reading of 50.0 indicates the market is neutral and a reading above 50.0 indicates the market is bullish.
(US$1=RMB6.844)
