BEIJING, Nov. 18 /PRNewswire/ -- Himfr.com ( http://www.himfr.com/ ), one of China's leading B2B search platforms with more than 30 B2B industry websites to its name, analyzed that amid a global economic downturn, the China soybean (http://www.himfr.com/buy-soybean/ ) market will remain stable with prices standing above 3.6 yuan/kilo towards the end of this year.
According to market analysts of Himfr.com, in protection of its huge agricultural (http://www.himfr.com/list-product-Agriculture-01000000-1.html ) economy, the Chinese government have sought to stabilize prices and increase incentive in growing grains (http://www.himfr.com/buy-grain/ ) by adopting measures at all levels, including the purchase of 1.5 million tons through the Nation Grain Stroage in the Northeast at 3,700 yuan/ton, which effectively curbed the falling prices of soybean in North eastern China. The government is likely to raise tariffs on its food (http://www.cheaponsale.com/buy-food/ ) imports and will introduce other policies to stabilize grain prices through domestic grain market regulations.
Worldwide food prices are likely to remain at current levels with governments taking measures and injecting huge sums of capital to the global economy in the face of an upcoming recession, with United Kingdom launching a 3.7 billion-pound plan, the United States more than 70 billion USD, Germany a 500 billion-euro package, and the Chinese government at least 7 billion RMB to help their economies, according to the analysts.
With international crude oil (http://www.himfr.com/buy-crude_oil/ ) falling below 65 U.S. dollars a barrel and the fall in the volume of international sea freight, At present, the current price of soybeans arriving Chinese ports is 3,600 Yuan/ton. If China decides to raise tariffs on imported soybeans, then the price of imported soybeans ( http://www.cheaponsale.com/buy-imported_soybean/ ) will be higher than current domestic soybean prices.
Domestically, with the Heilongjiang soybean oil (http://www.cheaponsale.com/buy-_soybean_oil/ ) companies gradually commencing production, soybean purchase price is pushed up to 3.7 yuan/kilo, and individual's grain purchase price have also increased to 3.6 yuan/kilo. The increase in purchase price is a more vigorous support of soybean prices' upward trend.
From the above-mentioned factors, analysts predict that before December 2008, prices of the Chinese domestic soybean will remain stable, unless new policies are introduced. Himfr.com expects that not until February 2009, will soybean prices come under market influence once again.
