December 22, 2008

 

China's DCE soy prices surge

 
 

Soy and soyoil prices rose by the daily limit on the Dalian Commodity Exchange (DCE) in China on speculation that the government may boost reserve purchases.

 

Soy futures jumped on rumours the government will increase buying to support flagging prices. China imports soy to supplement its domestic production and is also the world's largest consumer of palm oil, a cheaper alternative to soy oil.

 

Soy gained 5 percent to RMB3,216 a tonne, the highest level since November 28 and was last traded at RMB3,196 a tonne in Beijing. Soy oil also rose 5 percent to RMB6,014 a tonne and last traded at RMB5,956 a tonne.

 

US$1 = RMB6.848 (Dec 22)