SunSirs: Led by Negative Factors, the Soybean Meal Market Continued to Weaken in March

https://www.chemnet.com   Mar 29,2023

　　According to the monitoring data of SunSirs, in March, the demand for terminal feed was poor, and the soybean meal market continued to fluctuate and decline, with the overall decline exceeding 11%. At the beginning of the month, the average market price of soybean meal was 4,300 RMB/ton. On the 28th, the average market price of soybean meal was 3,800 RMB/ton, with a price decrease of 11.63%.

　　Analysis review

　　The oscillating decline of soybean meal market in March was mainly affected by the following factors:

　　Supply: According to customs data, China's soybean imports totaled 16.17 million tons in January-February, up 16% from 13.94 million tons at the same period of last year, setting a record for the same period in history. Ship schedule monitoring showed that the quantity of imported soybeans to the port in March was 6.19 million tons, an increase of 318,000 tons compared to the forecast of 5.872 million tons last month.

　　Inventory: Soybean meal inventory remained high in March, but began to decline somewhat in the middle of the month, with a limited decline. The inventory was still at a high level of 500,000 to 600,000 tons, basically unchanged from February's soybean meal inventory.

　　Future market: South American soybeans were intensively listed, with loose supply. The overall soybean futures in the external future market mainly declined. The soybean meal market in Dalian continued to decline in a weak manner, and the spot market was weak for rise, declined \ following the future market.

　　Demand: In March, the profits of the terminal aquaculture industry had shrunk, coupled with the decline in the prices of raw materials such as corn, feed companies had lowered the factory price of feed, and they purchased soybean meal when they used it, demand was weak, the market for soybean meal rise was under pressure, and the market cooled.

　　Market outlook

　　Agricultural product analysts from SunSirs believe that soybean meal has continued to decline and has shown a slowing trend. In addition, since April, rigid demand for aquatic feed will be improved, and soybean meal is expected to stop falling and rebound in the future. The market is expected to rise.

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