Soybean meal prices continue to decline amid rising stockpiles in China

The Chinese soybean market continues to show downward momentum. Amid rising inventories, the cost of imported raw materials continues to decline, according to the national information system SunSirs. This is putting significant pressure on processing plants, which have been operating with negative margins for several months.

The situation in the soybean meal market remains challenging: over the past week, domestic prices for this key processed product have fallen by more than 2%. This has directly impacted plant profitability.

According to analysts, soybean imports from Brazil for November and December deliveries have resulted in losses for processors ranging from -185 to -153 yuan per ton. Spot profits, calculated based on meal and oil futures in southern China, also remained negative, ranging from -179 to -110 yuan per ton.

Thus, the profitability of processing Brazilian soybeans, which form the bulk of Chinese imports, has remained low or negative for a long time. This poses serious challenges for the entire industry, forcing players to seek ways to optimize costs.

It was previously reported that China is increasing its soybean reserves. In August, the country’s soybean stocks reached a record high of 6.8 million tons amid the trade war with the United States. During the month, China imported 12.28 million tons of soybeans, setting another record.

Tags: China, prices, soybean, soybean meal