Soybean meal prices in China fell 14% in May, adding pressure on global soybean prices

According to China's SunSets commodity analysis system, in May the country reduced imports of soybean raw materials, in particular soybean meal, and its prices on the domestic market have fallen by 13.77% since the beginning of the month.

After the May holidays, soybean shipments to Chinese ports resumed, and the introduction of tariff declarations led to a decrease in soybean prices. Feed manufacturers are buying raw materials only when necessary, and domestic spot prices for soybean meal are also falling, SunSets notes.

As of May 20, the average spot price for soybean meal fell below 3,000 yuan/t or $418/t (-15% month-on-month), which increased pressure on global soybean and meal prices, especially against the backdrop of increased supplies from South America.

July soybean meal futures in Chicago fell 4% in three months to $300/t.

According to analysts, during May, soybean import volumes remained high and soybean oil plant utilization increased, while terminal demand remained average.

It was previously reported that China reduced soybean imports to a 10-year low in April due to delays in customs clearance and deliveries from Brazil, where a slow harvest and logistical problems negatively affected cargo flow.

Experts believe that in May and June, China will increase soybean imports by 3% compared to last year to a record 11 million tons for this period, but total imports will remain at a 6-year low.

The ANEC agency predicts that Brazil will increase soybean exports in May compared to April by 7.7% from 13.476 to 14.52 million tons (13.472 million tons in May 2024).

Amid a record soybean harvest, Brazil is increasing exports of soybean meal, having shipped a record 5.4 million tons in the 1st quarter, and, according to analysts' forecasts, will continue to increase supplies.