SunSirs: Negative Sentiment Persists, with Weak Rebound in China Soybean Meal Market in December

According to the commodity analysis system of SunSirs, the rebound of soybean meal prices in December was weak, and prices continued to decline weakly. On December 1st, the average market price of soybean meal was 3,024 RMB/ton, and on December 31st, the average market price of soybean meal was 2,866 RMB/ton, a decrease of 5.22% in price.

Starting from December, the demand for terminal feed has weakened, and the sowing of South American soybeans in the external market has ended, with negative factors dominating. The performance of soybean futures in the external market has been poor, while the domestic soybean meal futures market has followed suit and declined. The spot market has weak upward momentum and weak downward trend is the main reason. The domestic spot price of soybean meal has fallen below the 3,000 RMB mark, dropping to 2,916 RMB/ton, a decrease of nearly 4%.

In the middle of the month, the number of imported soybeans arriving at the port continued to increase, the operating rate of domestic soybean oil plants increased, the supply pressure doubled, and the demand for terminal feed industry was sluggish. The trading volume of soybean meal market continued to decline, and the domestic soybean meal market continued to be weak and mainly fell. As of December 20th, the market price of soybean meal fell to the line of 2,800 RMB/ton, a decline of more than 6%

At the end of the month, South American soybeans in the external market entered the growth period, supported by weather themes, and the soybean futures market improved. The demand for terminal feed stocking drove up, and the soybean meal market fluctuated and rose mainly, with prices returning to 2,800 RMB/ton, an increase of over 1.8%. Due to the month end increase being far less than the decline, the overall soybean meal market in December continued to decline.

The soybean meal analyst from SunSirs believes that as the Spring Festival approaches, soybean oil factories are gradually shutting down for maintenance, leading to tight supply. There is still room for an upward trend in the soybean meal market in the future.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.