August 10, 2022
China Soymeal: Tightened availability lifts prices (week ended Aug 8, 2022)
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Over the week, the closing price of CBOT November soy futures plummeted 4.1%.
Soy crushers cut production while prices were lower by 50% since March, hence squeezing profit margins. Compared with a week ago, crushing volumes dropped 60,000 tonnes to 1.68 million tonnes. Soymeal inventories of crushers continued to shrink for the third consecutive week to around 900,000 tonnes.
Consequently, even as demand for soymeal was limited despite high aqua feed production, prices of soymeal strengthened for the second week on tight availability.
Soymeal prices averaged RMB4,232/tonne, increasing RMB69/tonne or 1.7% compared with the previous week.
As crushers limit output, China's July soy imports totalled 7.88 million tonnes, down by 4.5% on-month and 9.1% on-year. Soy imports in August and September is projected to be low at 14.50 million tonnes.
With soymeal supplies set to be limited, and feed demand expanding as livestock producers prepare for the upcoming Mid-autumn Festival market, prices of soymeal are poised to move higher.
Full version of the report is available at: https://spoutinfo.com/market-forecast-detail/31/32/271/4297
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