BEIJING (Commodity Online): Soybean prices in China are set to fall now that Chinese New Year celebrations are over. Frbiz.com, one of China's leading B2B search platforms, reported that Soybean Oil wholesale prices have fallen from 7,800 yuan / ton down tot 7,400 yuan / ton. If the U.S. soybean imports to Hong Kong, the raw material cost reduction coupled with the low season for the Spring Festival, followed by edible oil, soybean oil also will decline as compared with the current prices. Their price will fall 5%, the price at 7,000 yuan / ton, FRBiz .com said.
In a month, a ton of soybean oil dropped 400 yuan. Soybean oil prices have behaved differently this year, the prices of other goods generally rise while the soybean oil prices are falling.Frbiz said that in December last year, the wholesale price of soybean oil has always been on the decline. As compared with the previous month, the current price of soybean oil fell 400 yuan per ton.
Although the prices fell, soybean oil sales are not as good. As edible oil prices began to drop, there were already a large number of companies with sufficient reserves of oil, so the recent sales are not very ideal, coupled with the off-season after the Spring Festival. So Frbiz expects that Soybean Oil prices will fall slowly.
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As soybean oil prices decline, the profits for dealers are not changed because their purchase price is relatively lower.
As the U.S. soybean imports arrived, the price per ton was lower than that of local soybean prices more than 600 yuan. Soybean oil production enterprises, in accordance with the use of local soybean 3740 yuan per ton, calculated the cost per ton of soybean oil needs -- 7,600 yuan - 7,500 yuan. But the current wholesale price of soybean oil is 7,400 yuan / ton, so these edible oil producers have great survival pressure.
Frbiz expects that after the Spring Festival, due to reduced demand, soybean oil prices will continue to slow down in the short term. It is expected the range will reach about 5%. (Courtesy: PRNewswire)
