China’s soybean meal market continues to weaken in June

According to the SunSirs analytical system, the Chinese soybean meal market continued to fall in June. Despite a short-term price increase by the middle of the month, price trends reversed by the end of June. By the end of June, the cost of soybean meal had fallen by 1.69%.

In the first ten days of June, the market sagged due to an abundance of imported soybeans, but then turned up. Since June 3, prices have been rising due to an optimistic USDA report and growth in soybean meal futures. By June 22, the average price exceeded 3,000 yuan/ton, adding 4%. However, by the end of the month, the trend changed due to a decrease in demand for feed. By June 27, the price fell to 2,906 yuan, losing 2.68% in 5 days. The cost of rapeseed meal showed a decrease of 4.38%, rapeseed oil – by 2.5%.

China previously announced a plan to reduce the soybean meal content of animal feed to 10% by 2030, down from 13% in 2023, as the ongoing trade war with the US heightens Beijing’s urgency to bolster food security.

Analysts expect the downward trend to continue as demand remains sluggish and supply pressures persist. The market could continue its steady decline unless there is a sharp change in external factors.

Tags: China, soybean meal