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GMO Certificate Management & Environmental Pressure Make Weak Soybean Meal Market Price Rebound

China Agriculture Report By CnAgri2017-11-29 16:52:08China Agriculture Report Print
Keywords:Grains Oilseeds
According to customs statistics and shipping dates, we expect that China may import 95 million tons of soybeans in 2017. Soybean stocks in port remain nearly 7 million tons for a long time. Even if the peak season of consumption is gradually approaching, it is difficult to offset the pressure of excessive soybean meal supply and soybean meal market is expected to remain weak and go down. However, the recent two policies have become strong support for the soybean meal market.
On the one hand, MOA strengthened the management of GMO certificates which affected the imported soybean shipments in batches. In view of this, some oil plants had to reduce or even stop the presale of soybean meal long-term forward contracts.
On the other hand, along with the beginning of the heating season in the north, currently most oil plants limited or stopped production under the environmental pressure in North China, the operating rates remained low in Northeast China, so soybean meal market supplies were tight in northern China. 
These two policies led to the recent tight supply of domestic soybean meal, temporarily relieved the high inventory pressure of nearly 7 million tons of soybeans in port, stimulate the oil plants to raise the soybean meal price. 

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