The outlook for soyameal among Chinese traders turned bullish for the first time this year, while that for soyaoil became bearish after five weeks of strong performance, according to a survey by a Chinese grain think-tank on Friday.
Feed mills became active buyers as the breeding industry recovered from a widespread pig disease. Sales have improved in areas including the northern province of Shandong, Jiangsu in the east and Fujian in the south. But crushers were not in a hurry to raise meal prices as they were still holding high stocks.
Physical soyaoil prices fell this week by about 200 yuan per tonne in most areas, tracking losses in international edible oils. Huge arrivals of edible oils also pressured the market.
Traders expected soyaoil prices to stay weak. China imported 49.7 percent more soyaoil and 28.9 percent more palmoil in the first five months of the year compared with a year ago.
That was in addition to 112,313 tonnes of rapeseed oil imports, a rise of 4,742 percent on the year, Customs figures showed on Friday. High soya stocks at ports and falling soyaoil prices had pressured the soya market and crushers were cautious about booking more cargoes.
The outlook for corn stayed strong but was weaker than last week. Traders expected a stronger market but were worried that falling Dalian futures prices could lead to the sale of futures contracts to the spot market. The rice market was strong, supported by rising edible oils prices.