Soybean crushers are gearing up soyoil production after the Spring Festival, creating a robust demand for soybeans.
It is learned that China Grain Reserve Corp. is negotiating with COFCO, Yihai Kerry Co., Ltd., Zhongfang Grain & Oils Corp., etc. on the release of 200,000 MT state-reserved soybeans to the latter. The first batch of soybeans to be released are about 50,000 ~ 70,000 MT imported in 2008. The crushers that receive the reserved beans are required to give China Grain Reserve Corp. equal amount of newly imported soybeans after four months.
The market expects a substantial soybean production increase in South America and a soybean price decline in the international market this year. Therefore, crushers are active to take part in China Grain Reserve Corp.’s soybean reserve rotation program.
