News
26.10.2009
Chinese soya buyers complete purchases for 2009
Chinese crushers have mostly completed soyabean purchases from the United States for the rest of the year, and are actively buying United States and South American cargoes for shipment next year, according to an official survey. China has already bought up to 15 million tonnes of soyabeans from the United States, the world's largest exporter and 5 million tonnes from South America, said the National Grain and Oils Information Centre (CNGOIC).
The soyaoil market weakened from last week as domestic merchants were unwilling to build more inventories. Record edible oil imports in September, coupled with a new harvest, have given sufficient supplies. The soyameal market ticked up supported by strong soya prices and tight market supply. Domestic crushers in coastal areas scaled down production as a result of low imports. Corn prices have rebounded sharply over the past week because of a supply shortfall from farmers. Farmers were waiting for government policy and unwilling to sell their new corn harvest.
Beijing has pledged to extend its stockpiling scheme into the new crop year, but has not said at what prices the government would stockpile. Corn processors also held a low stock. Wheat prices were expected to stay at current levels until the end of 2009 after the government raised its bidding prices at weekly auctions by 40-50 yuan ($5.86-$7.32) per tonne. The short-grain rice market remained bullish. A drought in the north-east region has hurt the quality of the new crop, but the bumper harvest will pressure prices.
Reuters
