News
08.05.2009
China soyabean demand strong, despite rising prices
The recent surge of Chicago Board of Trade soya prices has not dented demand from China, the world's largest soya importer, because many buyers are worried over supplies after reduced output in Argentina, according to an official survey.
Lower output in Argentina, the world's third-largest exporter, had led to tight supply world-wide, worrying Chinese buyers that prices may rise further, said the China National Grain and Oils Information Centre. Beijing's extended campaign of buying soyabeans from farmers for reserve stocks has also supported prices at home, it said.
The soyaoil market turned bullish as some traders anticipated much higher prices, while others argued that ample domestic supplies would cap prices from rising too far after an increase of about 7 percent this week, it said. Meanwhile, the outlook for soyameal remained bearish. Traders said abundant supply would restrict prices from advancing, even though demand has picked up slightly this week.
Reuters
