Dalian soyabean and soyaoil futures touched a record high on Thursday amid tight supplies at home, but the new peak prompted investors to lock in profits in soyaoil. The most-active soyaoil futures contract, May 2008, closed at 10,186 yuan ($1,391) per tonne, up just 0.4 percent from Wednesday.
Spot soyaoil prices rose 5.0 percent on Thursday to more than 12,000 yuan per tonne, their highest ever, and Beijing is set to auction reserves next month to help curb the rise amid fears of broader inflation in food prices.
"Supplies are tight. Crushers constantly raised prices by offering a limited amount of soyaoil to the market," said a soyaoil trader in Beijing.
Beijing, which bought about half a million tonnes of soyaoil last month, will release some of the reserves to the market when cargoes arrive in January. It has partially offset rising corn and wheat prices by selling state reserves, but it does not have sufficient reserves to affect soyaoil prices.
Vegetable oil prices rallied internationally on strong crude oil and a boom in biodiesel. "We see prices remaining at current levels despite reserve sales," said Chu Jianhong, an analyst with Chinatex Grains and Oils Import and Export Corp.