China to auction soybeans from state reserves amid tight supply

China will sell some soybeans from its state reserves to boost supplies to the world’s biggest oilseed market, said the National Food and Strategic Reserves Administration on Tuesday.

The administration did not give details of volumes and timing of the auctions.

Soymeal prices have jumped, just as pig farmers are struggling with low prices for their hogs.

China crushes soybeans to produce soymeal to feed its huge livestock industry.

“Soybean arrivals in February might be lower than previously estimated while arrivals won’t be big in March either. The situation could last until April,” said Zhu Rongping, agriculture analyst at commodity consultancy Mysteel, before the announcement.

The state reserves will also sell some edible oils as part of a rotation of its oil stocks, it said.