Rising soybean prices lead to rise in cooking oil prices

08:47, October 15, 2010      

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Data from the General Administration of Customs of China showed that since July of this year, the price of the imported soybean has risen consecutively, which has now become reason for domestic cooking oil producers like Arawana, Luhua and Longevity Flower to want to raise the prices of their products as well.

Longevity Flower's owner, China Corn Oil Company Limited, announced it will raise its prices on a notice publicized countrywide.

According to information obtained by the source, Arawana and Luhua are also itching for hikes of a speculated 10 percent. An unnamed worker in Luhua's Shanghai branch confirmed the firm will adjust its prices, but details would still depend on a formal notice.

The latest data from the China Custom showed that in September this year, China imported 4.64 million tons of soybeans at an average price of $449.7 per ton, 5.3 percent higher than the average price of July.

But this phenomenon is not solely existent in China. The US Department of Agriculture released a report Tuesday on which it stated that the country's soybean output will, by year-end, decrease about 75 million bushels, which is very likely to cause prices to soar soon.

China is a major importer of US soybean. Data showed that during the first nine months of the year, China imported 40.16 million tons of soybean from the US, up 24.1 percent year-on-year.

Recently in 2010, the corn, wheat and rice also had their prices adjusted. And a soaring cooking oil price would exert an even larger pressure to China's consumer price index (CPI), a main gauge of inflation, according to media reports.

Source: Global Times


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