Rising Soybean Price Expected in China

By CnAgri2012-07-11 13:28:58 Print

A recent planting intention survey made by the Ministry of Agriculture shows that soybean acreage may shrink 4.65% in China this year from last year.

US soybean production is predicted to decline this year because of drought.

Hog inventory was 461 million heads in China in May, 4.2% more than the same period of last year, suggesting increased feed consumption. Soymeal price hit RMB3,737/MT in early July, spurring soybean crushers to run at high capacity.

Soybean auction sales turned brisk in the near past, but due to limited trading volume the auction is unable to curb soybean price hike.

Soybean procurement price and imported soybeans’ price at Chinese ports recorded RMB4,067/MT and RMB4,379/MT respectively in early July, up 4% and 11% respectively on the year-on-year basis, signifying a rising trend of soybean price.

From "China Oil and Oilseeds Market Weekly Report"