China's soyabean traders expect the market to turn bullish as crushers start active purchases in the coming week, spurred by fears that prices will rise further, according to a survey by an official think tank on Friday. Demand for soybean imports will also rise, the China National Grain and Oils Information Center (CNGOIC) said.
A wide gap between international and Chinese soyoil prices will drive up the domestic price and also market demand as crushers see less possibility of a price drop and merchants need to replenish stocks, the CNGOIC said. Expectations for soyoil prices have turned from bearish to neutral, it noted.
The wheat market will tick up mainly because reserves in China's eastern Jiangsu province have almost been used up and local mills need to buy from other regions, it noted. Short supply and high transport costs from north-eastern rice producers will support higher rice prices amid rising demand, it said.
"Respondents expect non-glutinous rice demand to rebound... and market supply will continue to fall, which will increase the possibility of a sustained price rise," it said. Feed demand rose strongly as pig and chicken farmers increased their stocks, the CNGOIC said.
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