April 8, 2020

China Soymeal Weekly: Dwindling availability, strong demand lift prices (week ended Apr 6, 2020)
 
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Price summary

Prices continued to surge.
 

Weekly transacted prices of soymeal in China

Region

Protein content (%)

Price as of
Mar 20
(RMB/tonne)

Price as of
Apr 6
(RMB/tonne)

Price change
(Percentage)

Heilongjiang

43%

3172

3270

98

Liaoning

43%

3240

3270

30

Hebei

43%

3212

3288

76

Shandong

43%

3116

3234

118

Jiangsu

43%

3168

3262

94

Guangdong

43%

3086

3122

36

Prices are representative and are for reference only.
RMB1=US$0.1413 (Apr 7)

 

Market analysis

Over the week, prices of CBOT May soy futures dropped 1.8% amid concerns of poor demand due to the Wuhan coronavirus pandemic.

Nonetheless, soymeal prices climbed higher in China as crushing volumes were limited with soy availability scarce. Inventories of crushers have shrunk to six-and-a-half year lows despite slower trade lately. Meanwhile, large grains companies continued to expand soy inventories in view of short supplies in the coming period.
 

Market forecast

Soy imports are set to fall below expectations with the logistics of the US and south America severely disrupted by the pandemic. Prices of soymeal will stay firm despite slow hog feed consumption.
 

 


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