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Soybean Meal & Oil Prices Dropped, Soybean Crushing May Suffer Losses

China Agriculture Report By CnAgri2017-03-27 09:48:56China Agriculture Report Print

Currently, the domestic soybean meal price in the main regions dropped to 3,155 RMB/ton, down 500 RMB/ton from mid-December last year, the lowest level in the past eight months. Meanwhile, the domestic main vegetable oil price kept falling for 3 consecutive months, currently, the grade-4 soybean oil price fell to 6,600 RMB/ton, down 750 RMB/ton from the end of last year. Thus, the soybean crushing profits continued to decline and recorded around 30 RMB/ton but the price was more than 500 RMB/ton at the end of last year.

In the future, soybeans and soybean products will witness an oversupply situation, the prices of the terminal products will keep falling, the soybean crushing profits will continue to be compressed and quickly stepped into the stage of losses.

A. Livestock and poultry breeding industry remained weak as a whole whose demand for soybean meal was sluggish. Along with the increasing supply, the soybean meal price will continue to go down.

B. Vegetable oil consumption entered the off-season. Due to the good crushing profits in earlier period, the operation rate of the oil plants remained high which led to a higher level of soybean oil stocks.

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