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Because of A Slow Progress of Soybean Meal Replenishment before Chinese New Year, Soybean Meal Would Face Obvious Pressu

China Agriculture Report By CnAgri2018-02-07 15:54:34China Agriculture Report Print The traders and feed companies all took an active part in replenishing soybean meal in large quantities before Chinese New Year of previous years, but since January 2018, soybean meal trading has been in a sluggish situation, and the prices also decreased to below RMB 3,000/MT. It was predicted that soybean meal stocks of oil plants would further ascend after Chinese New Year and the pressure of an oversupply would be obvious, pushing down the prices.
(1) Along with huge imports, the operating rate of soybean mills was high and the stocks at the ports also maintained a high level, but due to a weak demand and slow delivery, soybean meal stocks have reached a high level of 1 million MT. Besides, it was predicted that soybean supply would continue to increase: soybean arrival at the ports still should be 8.1 million MT in January, and would be around 5.5 million MT in February and 6 million MT in March.  
(2) Along with the improving of operating efficiency and logistics efficiency, feed companies cut down the number of replenishment each time and adopt the “hand-to-mouth buying” strategy, in order to reduce the risk and the costs of storage and management. 
(3) Soybean meal would enter traditional off season of consumption after Chinese New Year, and the demand for soybean meal won’t ascend obviously. Poultry farming enters off season, piglet stocks improve year on year and aquaculture has not started. And meanwhile, the proportion of soybean meal instead of rapeseed meal and other meals has reached the upper limit. 
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