News
13.11.2009
Chinese soya buyers slow down after purchases: survey
Chinese soyabean importers are expected to slow down their purchases in coming weeks after earlier heavy bookings covered requirements until January, an official survey showed. China has bought more than 15 million tonnes of US soyabeans and 6 million tonnes of South American new crop.
Imports are estimated to hit 4 million tonnes each month in December and January, said the China National Grain and Oils Information Centre (CNGOIC). China's November imports will rebound to 3.5 million tonnes, up from 2.52 million tonnes in October, it said. Falling Chicago Board of Trade soya prices this week have spurred Chinese to order more.
The soyaoil market ticked up with prices steady this week. Expensive imports will support domestic prices, but any rise will be capped due to ample supplies, it said. The soyameal market has turned bearish. Further soyabean arrivals have prompted crushers to be more willing to reduce soyameal prices. Market participants believe low import costs of soya will pressure soyameal prices. Feed mills are waiting for prices to fall before making large purchases.
The corn market remains strong. Processors in the north-east were not active purchasing from farmers, supporting prices above last year's government prices. Bad weather in north China reduced sales by farmers and worsened transport to markets in the consuming south, tightening supplies there. The wheat market was strong due to a recovery in sales of flour. The market is watching if Beijing will raise minimum bidding prices again at weekly auctions.
Reuters
