Surge in Soybean Meal Stocks
As of July 26, China’s soybean meal stocks reached a record 1.38 million tons, marking a 29% increase from the previous month and a staggering 86.5% rise compared to the same period last year, according to the China National Grain and Oil Information Center.
Rising Soybean Crusher Stocks
Soybean crusher stocks also continued to climb, totaling 7.12 million tons. This represents a 14.3% increase from the previous month and a 29.5% increase from the same period last year.
Refinery Capacity and Market Pressure
In August, the average weekly processing capacity of oil refineries is expected to remain around 2 million tons. Although efficiency will be lower compared to last year, analysts predict that the pressure on the meal market will persist due to the concentration of oilseeds at ports. The volume of imported soybeans arriving at ports continued to increase in July, leading to an unstable supply of soybean meal and exerting downward pressure on prices.
Declining Soybean Meal Prices
By the end of July, the average market price of soybean meal had dropped by 7.69% over the month to 3,048 Yuan per ton (392 Eur).
The significant increase in soybean meal and crusher stocks in China, coupled with rising imports, highlights the challenges faced by the soybean market. The ongoing pressure on soybean meal prices underscores the impact of fluctuating supply levels and port congestion. As the market navigates these dynamics, stakeholders must closely monitor trends and adjust strategies accordingly to maintain stability and capitalize on potential opportunities in the evolving landscape.
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