December 28, 2011

Even as the New Year holiday demand warms up, China's grain and oils prices are mostly stable while some have even fallen.

With grain output rising for eight years running and a string of regulative measures to stabilise consumer prices, grain supply in China is adequate and prices have just gained by a small margin since the beginning of this year.

However, since December, wholesale prices of soyoil have witnessed a decline and some well-known brands have cut prices by around 3%.

As China depends heavily on soy imports, the international market has a big impact on domestic spot prices. Soy prices on Chicago Board of Trade (CBOT) have been falling from September and this is a major reason leading to a drop of wholesale soyoil prices on the Chinese market.