BEIJING (Dow Jones)--Soybean prices in China's major producing areas were
slightly lower in the week to Friday, pressured by government sales.

  Prices in Harbin city in Heilongjiang, a key growing province, were around
CNY3,580-CNY3,600 a metric ton compared with CNY3,600 a week earlier.

  In Jiamusi, also in Heilongjiang province, prices were at
CNY3,480-CNY3,520/ton, down from CNY3,520 last week.

  Although the government failed to sell any soybeans from its reserves to the
market during the two sets of auctions which began last week due to high
auction prices, the supply pressure hovering over the market hasn't eased, as
it still has to sell millions of tons of soybeans by the coming harvest
beginning September.

  There is little soybean supply left in the market, as most is controlled by
the government, leaving trading very light.

  Soyoil prices were consolidating, with a fall seen earlier this week, but
they recovered the losses later along with a rise in the futures market.

  First-grade soyoil prices in Dongguan in Guangdong province were at
CNY7,000-CNY7,050/ton, unchanged from a week ago.

  In Rizhao in Shandong province, they were around CNY6,800-CNY6,950/ton, down
slightly from CNY7,000/ton.

  Ample domestic soyoil supply means there is little possibility for soyoil
prices to rise much, and demand will remain weak in the coming weeks, the China
National Grain and Oils Information Center said in a note.

  Soymeal prices were stable to slightly lower, and weak feedmeal demand is
likely to keep prices at current levels, said analysts.

  Some processors suspended production due to low profits amid weak demand,
helping to support the prices.

  In Dongguan, soymeal was around CNY3,350/ton, stable from a week ago. In
Rizhao, it was around CNY3,280/ton versus CNY3,300/ton.


  -Zheng Xiaolu contributed to this story, Dow Jones Newswires; 8610 6588-5848;
tracy.zheng@dowjones.com