Moderate Soymeal Price Decline Expected

By CnAgri2012-09-28 13:25:41 Print

Soybean price has dropped in the futures market recently. Feed mills are cautious in purchasing soymeal currently. To promote sales, some crushers have lowered soymeal price to RMB4,200 ~ 4,250/MT and some traders are dumping soymeal at RMB4,180/MT.

The delivery of imported soybeans to the Chinese ports has kept shrinking over the last few months. August saw a delivery of 4.42 million MT, down 24.7% from the month before, creating a bottom low in six months. Soybean delivery may keep shrinking in September and October, conducive to the reduction of stock pressure in China.

It is predicted that soymeal price may drop further in the short run, but with the reduction of stock pressure, soymeal price may pick up near the end of this year.

From “China Grains Market Weekly Report”