Chinese grain traders expect the soyameal market to stay bullish for a second week in a row next week while soyaoil turned bearish after five weeks of strong performance, a survey by an official grain think-tank showed.
Traders' outlook for the soyabean market improved on expectation of more import orders in coming weeks. Domestic soyameal demand has picked up, pushing up prices. Crushers were likely to import more soyabeans after low arrivals in August and September. Traders had expected imports in August and September to be lower than July's imports of 3.03 million tonnes.
Feed mills were active in building inventories. The high cost of imported soyabeans would make meal prices more expensive. Demand from poultry and fish breeders was strong while that from pig breeders kept sluggish. The market expects meal demand to keep growing in coming weeks.
Falling soyaoil prices have interrupted purchases by trading companies. The corn market stayed bearish. More sales from the government reserve systems would continue to pressure the market. On Friday, Jilin offered to sell 100,000 tonnes from local reserves but sold only 38,600 tonnes.
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