March 15, 2021                              

China Soymeal: Prices tumble further, 13% below January peak (week ended Mar 15, 2021)


Over the week, prices of CBOT May soy futures slid 1.2%.


Weal demand continued to drag down soymeal prices as hog feed producers limited production. From early January's peak of RMB4,047/tonne, soymeal prices have plummeted 13%.


Inventories of crushers expanded to 851,400 tonnes, higher by 102,800 tonnes compared with the previous week. Compared with the same period a year ago, soymeal inventories were sharply higher by 81%.


Crushers will be under pressure to clear mounting soymeal stocks. As feed producers withhold purchases, soymeal prices are likely to soften further to new lows for the year.


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