Beijing, Oct 24 - More Chinese soy crushing plants, especially in the north, are importing cheaper U.S. soybeans, a survey by an official think-tank showed on Friday, because Beijing's purchase of domestic soy for state reserves pushed up local prices.
Beijing has agreed to buy a certain amount of soybeans for state reserves at prices of 3,700 yuan ($541.3), pushing domestic prices above the cost for imports, according to the survey by the official China National Grain and Oils Information Centre (CNGOIC).
"There are more inquires on imported soybeans by crushers," the center said, although it expected import volume to remain flat due to ample supplies from months of strong imports.
Soyoil trade picked up due to low prices. More purchases were seen in the market, but merchants were still unwilling to build stocks.
Feedmills are building soymeal inventories this week, while crushers have scaled down production in an effort to support meal prices, it said.
"There is less room for meal prices to fall further in coming weeks," said the center. Feed mills were building inventories, which would maintain meal demand at a normal level.
The wheat market weakened in quiet trade following Beijing's final announcement on raising the minimum purchase price for next year's crop. The market had been expecting the news, but the impact from the price rise was expected only after the Lunar New Year next year.
Corn stayed bearish even after the government raised its purchase prices in the northeast this year. Trade remain sluggish due to weak demand from processors.
The centre gave the following index data.
Oct 22 Oct 15 Oct 9
Soybean 48.8 49.4 50.6
Soymeal 49.0 47.5 49.5
Soyoil 47.5 44.2 41.7
Corn 42.9 42.4 42.6
Wheat 52.4 54.3 57.1
Rice 56.9 53.8 56.3
A reading below 50.0 indicates participants are bearish, a reading of 50.0 indicates they are neutral and a reading above 50.0 indicates they are bullish.
Source: Marketing Monitoring Division, CNGOIC.
NOTE: The indexes are based on data collected from 400 market participants, including storage firms, oilseed processors and traders in China's 17 major producing and consuming provinces.
China grain prices can be found on. Please search GRAIN/CN for past reports from CNGOIC.
($1=6.835 Yuan)