Soybean meal price moved up in China

By CnAgri2012-07-04 17:57:42 Print

The producer’s soymeal price averaged RMB3,540/MT on June 29, up 7% over the month before and up 13% on the year-on-year basis.

Causes behind the soymeal price hike include the following: First, soymeal price is on the rise in the international market, having an impact on the Chinese market. Second, soybean crushers suffered losses in the last few months, affecting soymeal production. Third, feed production added 23.59% in January ~ May on the year-on-year basis and feed consumption is expected to go up in the third quarter of this year, which props up soymeal price.

Soybean crushers are expected to gear up production in the next few months, likely to result in a soymeal price decline. Considering growing demand for soymeal from the feed industry, soymeal price is surmised to stay high in the third quarter.

From "China Oil and Oilseeds Market Weekly Report"