February 23, 2021
China Soymeal: Low hog feed demand set to curtail sales (week ended Feb 22, 2021)
Over the week, prices of CBOT May soy futures rose by 0.64%.
Prices of soy oil remained strong, motivating crushers to step up production, which in turn supressed soymeal prices as a result. Sales were negligible over the past two weeks due to the Chinese New Year holidays while prices remained flat.
Meanwhile, China government increased the country's soy production to 19.60 million tonnes for output year 2020.
Weekly soymeal prices edged up RMB1/tonne or 0.03% to RMB3,823/tonne on average.
Monthly soy imports during February and March is projected at 6.2 million tonnes, hence resulting in tightened supplies of soymeal. However, with hog market weak, and the outbreak of African Swine fever severe in January, low hog feed demand will curtail the sales of soymeal. This, in conjunction with higher than expected soy output in China, will put a lid on soymeal prices.
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