China's soybean processing volume hits historic high in June

According to the Chinese commodity market analysis system SunSirs, in June, soybean processing in China reached a record 9 million tons, and soybean meal production exceeded 7 million tons, which exceeds the monthly average of 6.5 million tons. Thanks to active soybean imports from Brazil, processing volumes in July will also remain quite high.

Soybean meal deals and shipments have slowed recently, and the pace of inventory build-up has exceeded expectations. Analysts expect soybean meal inventories to exceed 1 million tonnes by the end of July.

Amid a large volume of soybean imports, soybean meal prices in China fell 1.69% in June. They are also pressured by the authorities' permission to import soybean meal from Argentina, Uruguay and Ethiopia. After a 6-year break in supplies, Argentina has already shipped the first batch of meal to China.

The long-term negotiation of the terms of a trade agreement between the US and China is increasing uncertainty about US soybean exports in the new season, which, against the backdrop of an improved soybean crop in the US, led to a decrease in November soybean futures in Chicago by 4% per week to $370/t (-8% per year).