Spot soybean prices in China's main producing areas fell in the week to Friday on expectations that soybean supplies will increase as harvesting begins later this month.

In Heilongjiang Province, China's largest soybean-producing area, spot soybean prices in Bei'an and Jiamusi fell to about 3,700 yuan per ton that week, from 4,000 yuan per ton the previous week.

Trading was thin as market participants bet prices would fall further. They say the impact of adverse weather on crops is gradually disappearing as harvest approaches.

However, input costs are higher this year due to rising oil prices, which has limited the sharp decline in soybean prices. Analysts, meanwhile, said a possible increase in supply would prevent prices from soaring.

Spot soybean oil prices fell this week, following the decline in vegetable oil and crude oil prices in the futures market.

The price of first-grade soybean oil in Shandong Rizhao was 8,300-8,700 yuan per ton that week, which was lower than the 8,850-9,000 yuan per ton in the previous week.

The price of soybean oil in Dongguan City, Guangdong Province was 8,300-8,700 yuan per ton, compared with 8,850-9,100 yuan per ton the previous week.

A report from Heilongjiang Jiusan Oil Co., Ltd. showed that buyers remained cautious as soybean oil processing plants accelerated sales to convert cash before prices fell further. Demand for vegetable oil is expected to remain weak in the short term, the report said.

The price of soybean meal (3332,2.00,0.06%, bar) (33322.000.06%) fell slightly that week.

The price of soybean meal in Rizhao was reported at 3,710-3,780 yuan per ton, compared with 3,780-3,850 yuan per ton the previous week.

The price of soybean meal in Dongguan is between 3,700-3,800 yuan per ton, which is lower than the 3,800-3,850 yuan per ton in the previous week.