Soymeal consumption expected to rise in China

Demand for soymeal in China may rise on expectations hog inventories will expand, according to the China National Grain & Oils Information Centre.

 

"The market is increasingly upbeat on the expectation of rising soymeal consumption," the Centre said. At the end of March, breeding sows made up 11% of the country's total hog inventory, compared with the normal 9%, indicating higher capacity for reproduction, it said.

 

China's measures to boost pork prices and a dispute over soyoil imports have spurred more purchases of soy, which is crushed to make meal and oil. Demand for soymeal has a stable base because it is not easy to alter the type of feed given to pigs, said analyst Chen Baomin. If expectations build for a price rise, feedmills buy more to boost inventories, Chen said.

 

China's inbound soy shipments may reach a record 5.5 million tonnes in May, up from about 4.3 million tonnes this month, the centre said. Imports in June may also be five million tonnes before declining to four million by July, it said.

 

China for the second time this year began to stockpile pork on April 20 to boost hog prices, the Ministry of Commerce said. Prices of hogs during the week of April 12 on average rose 0.6% from week earlier to RMB19.7 (US$2.9) per kilogram. Pork prices will likely pick up more after the government launched the stockpiling measures, Chen said.