2/12/06 (Soyatech.com)  -  The soybean price on the domestic market rose while the soybean pulp price fell, according to Zhengzhou Grain Wholesale Market.

The Grade-4 soybean oil price rose by 300-400 yuan (US$37-US$50) per ton in North China while that in Southern China rose by 200 yuan.

The ex-factory price of the Grade-4 soybean oil in Heilongjiang rose to 5,400-5,450 yuan, that in Liaoning and Jilin rose to 5,400-5,440 yuan, that in Jiangsu and Zhejiang rose to 5,250-5,300 yuan, and that in other parts of Southern China rose to 5,140-5,170 yuan.

Meanwhile Grade-1 soybean oil also rose greatly. Its ex-factory price rose to 5,750-5,780 yuan in Heilongjiang, 5,600-5,650 yuan in Dalian, 5,600-5,620 yuan in Beijing and Tianjin, 5,600 yuan in Shandong, 5,550 yuan in Jiangsu and Zhejiang and 5,500 yuan in Guangdong.

Three factors are attributable to the soaring soybean oil price:

1. With the spread of bird flu and the falling of the futures price on Chicago Soybean Futures Market, soybean processing enterprises have reduced production and soybean oil supply has decreased;

2. Many refineries began to purchase raw materials from the end of October, then the domestic demand for soybean oil boomed in a short time. Meanwhile the import of soybean oil declined in October. The growing demand pushed the soybean oil price up;

3. Sellers sold out their stocks in the previous period for anticipating a fall in the price.

But from November, they began to purchase soybean oil instead of selling due to anticipation of a price rise and that has pushed up the soybean oil price.