The decline in soybean meal prices in China increases the pressure on global quotations

According to SunSirs Commodity Market Analysis System, in July, the average market price of soybean meal in China decreased by 7.69% from 3,302 to 3,048 yuan/t.

Soybean import volumes continued to rise in July, while the supply of soybean meal was volatile, increasing pressure on inventories. In addition, forecasts of a good soybean harvest in the US led to a sharp decline in soybean meal prices in the first half of July by 6.12%. Soybean meal prices rose 2% in the middle of the month amid a supply shortage in the neighboring canola meal market, but later fell again under pressure from large inventories, losing more than 7% for the month overall.

SunSirs experts believe that in August, soybean meal prices in China will fall to a historic low. However, processing plant shutdowns due to very high temperatures could reduce supply and lead to higher soybean meal prices in the near term.