
On February 19th, the National Grain and Oil Information Center reported that domestic soybean meal prices may maintain high volatility in the near future.
One reason is that the supply and demand fundamentals of American soybeans have tightened, with price fluctuations being the main factor. There is support above $10 per bushel, and the Brazilian soybean premium has remained firm, raising China's import costs.
Secondly, from February to March, China imported fewer soybeans to the port, and the supply of raw materials was tight before the end of March.
Thirdly, after the Spring Festival, the operating rate of oil plants has rebounded, and there is a demand for replenishment downstream. In March, some oil plants will gradually shut down for maintenance. At that time, the supply of soybean meal spot will be tight, and oil plants have a strong willingness to raise prices. Spot and basis prices are expected to remain high.
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