AgriHunt

China sells 68,328 tonnes of soya from state reserves

China sold 68,328 tonnes of soya from state reserves at a regular auction on Tuesday, the largest volume since late 2010, as lower state prices prompted crushers to stock up on the oilseed.

Volumes from state sales may jump further in the coming months as rising Chicago Board of Trade soya prices, supported by a drought-reduced South American crop, are expected to boost prices for imported soya to more than 4,500 yuan per tonne next month, traders said.

Crushers in the provinces of Shandong and Hebei bought 68,328 tonnes of soya at an average price of 3,946 yuan ($630) per tonne, according to an official website.

A total of 299,478 tonnes of soya was offered at the auction, held twice a month since December 2010.

The price at the auction was 10 percent lower than that for imported soya which was offered at about 4,400 yuan per tonne at ports in Shandong province.

The government held between 3-4 million tonnes of old stocks of soya from harvests as far as 2008, according to traders' estimates.

Besides, the government also stockpiled 3.5 million tonnes from its 2011 harvest, the China National Grain and Oils Information Center said.

Courtesy Reuters