CHINA, the biggest soybean buyer, plans to boost purchases of new-crop soybeans as a record harvest and slumping oil seed prices threaten farm incomes, five trading executives familiar with the situation said.
The government may buy 1 million tons of new-crop soybeans in northeast China's main growing region starting next month, where prices have fallen 15 percent in the past month, said the executives, who declined to be identified as state policy changes are confidential.
Soybean prices in Chicago tumbled 24 percent in the past month in a widespread commodity sell-off as a deepening financial crisis toppled banks in the United States and Europe, froze credit markets and slowed economic growth. China's domestic soybean futures plunged 22 percent in that period, or almost 40 percent from its record 5,241 yuan (US$767) on July 3.
China's soybean harvest may jump 37 percent to 17.5 million tons this year as a result of increased acreage, the China National Grain and Oils Information Center said October 8.
A decision by China to raise domestic prices may boost the global soybean market as China accounts for almost half the world's soybean trade, Bloomberg News said.
The country is expected to import 36 million tons in the year that began October 1, a drop of 1.4 percent from a year earlier, according to US Department of Agriculture's estimates.
State purchases of soybeans at above-market prices are necessary to stem an income disparity between the rural and urban areas and prevent social unrest by aiding the farmers during their harvesting and selling of the new crops, trading executives said.
Soybean prices in the nation's northeast main growing region have fallen to 3,300 yuan a ton, from 3,900 yuan before the week-long National Day holiday that started September 29, Tian Feng, analyst at BOC International (China) Ltd, said yesterday from Shanghai.
CHINA, the biggest soybean buyer, plans to boost purchases of new-crop soybeans as a record harvest and slumping oil seed prices threaten farm incomes, five trading executives familiar with the situation said.
The government may buy 1 million tons of new-crop soybeans in northeast China's main growing region starting next month, where prices have fallen 15 percent in the past month, said the executives, who declined to be identified as state policy changes are confidential.
Soybean prices in Chicago tumbled 24 percent in the past month in a widespread commodity sell-off as a deepening financial crisis toppled banks in the United States and Europe, froze credit markets and slowed economic growth. China's domestic soybean futures plunged 22 percent in that period, or almost 40 percent from its record 5,241 yuan (US$767) on July 3.
China's soybean harvest may jump 37 percent to 17.5 million tons this year as a result of increased acreage, the China National Grain and Oils Information Center said October 8.
A decision by China to raise domestic prices may boost the global soybean market as China accounts for almost half the world's soybean trade, Bloomberg News said.
The country is expected to import 36 million tons in the year that began October 1, a drop of 1.4 percent from a year earlier, according to US Department of Agriculture's estimates.
State purchases of soybeans at above-market prices are necessary to stem an income disparity between the rural and urban areas and prevent social unrest by aiding the farmers during their harvesting and selling of the new crops, trading executives said.
Soybean prices in the nation's northeast main growing region have fallen to 3,300 yuan a ton, from 3,900 yuan before the week-long National Day holiday that started September 29, Tian Feng, analyst at BOC International (China) Ltd, said yesterday from Shanghai.