Latest news with #soymeal
Yahoo
29-07-2025
- Business
- Yahoo
China's soymeal glut raises demand doubts ahead of US soybean export season
By Ella Cao and Naveen Thukral BEIJING/SINGAPORE (Reuters) -China's appetite for soybeans is likely to weaken during the peak U.S. marketing season later this year, as record imports earlier in 2025 and tepid demand from animal feed producers have pushed up soymeal inventories at home, trade sources said. The world's biggest soybean importer has yet to book U.S. cargoes for the fourth quarter, with traders closely monitoring talks in Stockholm aimed at resolving longstanding economic disputes at the centre of the U.S.-China trade war. A slowdown in Chinese demand could pressure Chicago soybean futures, which are already down for a second consecutive week on expectations of a bumper U.S. harvest. [GRA/] China's soymeal futures fell for a fourth straight session on Tuesday amid ample supplies. In the physical market, spot soymeal in north China was quoted at 2,925 yuan ($408) per metric ton, down 6.5% from 3,130 yuan a year ago, said Wang Wenshen, an analyst at Shandong province-based consultancy Sublime China Information. "If third-quarter prices stay weak and crushers face losses, fourth-quarter soybean purchases may fall short of expectations," Wang said. The last quarter of the year is typically the main U.S. soybean marketing season. China's overall soybean imports hit a record high in May and their second-highest level in June, boosting oilseed processing and leading to a buildup in soymeal inventories, traders said. CRUSHER SHUTDOWNS The surplus is straining China's crushing plants, with some already shutting down due to storage constraints. "Small-scale shutdowns have already begun at crushing plants in regions like south China primarily because soybean meal has accumulated with no room for more stock," said a Shanghai-based trader, adding that a broader suspension was "highly likely". Crush margins in Rizhao, China's main processing hub, have been negative since mid-May. The glut has been worsened by weak demand from animal feed producers amid sluggish meat consumption in the world's top pork market. Crushers will face "huge soymeal stock pressure" over the next one to two months, said Cheang Kang Wei, vice president at StoneX in Singapore. Authorities have pledged to cut breeding sow numbers, curb new capacity, and reduce soymeal use in feed to stabilise meat prices after steep declines this year, measures analysts say will further limit soymeal consumption. China's purchases of Argentine soymeal, amid high tariffs of U.S. beans, in the last few weeks are likely to add to the glut. "Even with such big supply of soymeal in the local market, it is profitable to import meal from Argentina," said a Singapore-based trader at an international trading company. "This will only add to the stocks of soymeal." A trade deal with Washington could shift buying patterns. "If a trade deal is reached, Chinese buyers could resume U.S. purchases for the fourth quarter, as prices are favourable without tariffs," said Johnny Xiang, founder of Beijing-based AgRadar Consulting. ($1 = 7.1767 Chinese yuan)
Yahoo
29-07-2025
- Business
- Yahoo
China's soymeal glut raises demand doubts ahead of US soybean export season
By Ella Cao and Naveen Thukral BEIJING/SINGAPORE (Reuters) -China's appetite for soybeans is likely to weaken during the peak U.S. marketing season later this year, as record imports earlier in 2025 and tepid demand from animal feed producers have pushed up soymeal inventories at home, trade sources said. The world's biggest soybean importer has yet to book U.S. cargoes for the fourth quarter, with traders closely monitoring talks in Stockholm aimed at resolving longstanding economic disputes at the centre of the U.S.-China trade war. A slowdown in Chinese demand could pressure Chicago soybean futures, which are already down for a second consecutive week on expectations of a bumper U.S. harvest. [GRA/] China's soymeal futures fell for a fourth straight session on Tuesday amid ample supplies. In the physical market, spot soymeal in north China was quoted at 2,925 yuan ($408) per metric ton, down 6.5% from 3,130 yuan a year ago, said Wang Wenshen, an analyst at Shandong province-based consultancy Sublime China Information. "If third-quarter prices stay weak and crushers face losses, fourth-quarter soybean purchases may fall short of expectations," Wang said. The last quarter of the year is typically the main U.S. soybean marketing season. China's overall soybean imports hit a record high in May and their second-highest level in June, boosting oilseed processing and leading to a buildup in soymeal inventories, traders said. CRUSHER SHUTDOWNS The surplus is straining China's crushing plants, with some already shutting down due to storage constraints. "Small-scale shutdowns have already begun at crushing plants in regions like south China primarily because soybean meal has accumulated with no room for more stock," said a Shanghai-based trader, adding that a broader suspension was "highly likely". Crush margins in Rizhao, China's main processing hub, have been negative since mid-May. The glut has been worsened by weak demand from animal feed producers amid sluggish meat consumption in the world's top pork market. Crushers will face "huge soymeal stock pressure" over the next one to two months, said Cheang Kang Wei, vice president at StoneX in Singapore. Authorities have pledged to cut breeding sow numbers, curb new capacity, and reduce soymeal use in feed to stabilise meat prices after steep declines this year, measures analysts say will further limit soymeal consumption. China's purchases of Argentine soymeal, amid high tariffs of U.S. beans, in the last few weeks are likely to add to the glut. "Even with such big supply of soymeal in the local market, it is profitable to import meal from Argentina," said a Singapore-based trader at an international trading company. "This will only add to the stocks of soymeal." A trade deal with Washington could shift buying patterns. "If a trade deal is reached, Chinese buyers could resume U.S. purchases for the fourth quarter, as prices are favourable without tariffs," said Johnny Xiang, founder of Beijing-based AgRadar Consulting. ($1 = 7.1767 Chinese yuan)
Reuters
29-07-2025
- Business
- Reuters
China's soymeal glut raises demand doubts ahead of US soybean export season
BEIJING/SINGAPORE, July 29 (Reuters) - China's appetite for soybeans is likely to weaken during the peak U.S. marketing season later this year, as record imports earlier in 2025 and tepid demand from animal feed producers have pushed up soymeal inventories at home, trade sources said. The world's biggest soybean importer has yet to book U.S. cargoes for the fourth quarter, with traders closely monitoring talks in Stockholm aimed at resolving longstanding economic disputes at the centre of the U.S.-China trade war. A slowdown in Chinese demand could pressure Chicago soybean futures , which are already down for a second consecutive week on expectations of a bumper U.S. harvest. China's soymeal futures fell for a fourth straight session on Tuesday amid ample supplies. In the physical market, spot soymeal in north China was quoted at 2,925 yuan ($408) per metric ton, down 6.5% from 3,130 yuan a year ago, said Wang Wenshen, an analyst at Shandong province-based consultancy Sublime China Information. "If third-quarter prices stay weak and crushers face losses, fourth-quarter soybean purchases may fall short of expectations," Wang said. The last quarter of the year is typically the main U.S. soybean marketing season. China's overall soybean imports hit a record high in May and their second-highest level in June, boosting oilseed processing and leading to a buildup in soymeal inventories, traders said. The surplus is straining China's crushing plants, with some already shutting down due to storage constraints. "Small-scale shutdowns have already begun at crushing plants in regions like south China primarily because soybean meal has accumulated with no room for more stock," said a Shanghai-based trader, adding that a broader suspension was "highly likely". Crush margins in Rizhao , China's main processing hub, have been negative since mid-May. The glut has been worsened by weak demand from animal feed producers amid sluggish meat consumption in the world's top pork market. Crushers will face "huge soymeal stock pressure" over the next one to two months, said Cheang Kang Wei, vice president at StoneX in Singapore. Authorities have pledged to cut breeding sow numbers, curb new capacity, and reduce soymeal use in feed to stabilise meat prices after steep declines this year, measures analysts say will further limit soymeal consumption. China's purchases of Argentine soymeal, amid high tariffs of U.S. beans, in the last few weeks are likely to add to the glut. "Even with such big supply of soymeal in the local market, it is profitable to import meal from Argentina," said a Singapore-based trader at an international trading company. "This will only add to the stocks of soymeal." A trade deal with Washington could shift buying patterns. "If a trade deal is reached, Chinese buyers could resume U.S. purchases for the fourth quarter, as prices are favourable without tariffs," said Johnny Xiang, founder of Beijing-based AgRadar Consulting. ($1 = 7.1767 Chinese yuan)
Yahoo
10-07-2025
- Business
- Yahoo
Soybeans Holding Lower on Tuesday
Soybeans are showing losses of 2 to 6 cents on Tuesday's midday. There were 86 deliveries issued against July soybean overnight, all by the ADM house account. The cmdtyView national average Cash Bean price is down 5 1/2 cents at $9.84 ¼. Soymeal futures are $0.80/ton lower, with Soy Oil was down 4 points. There were another 473 deliveries against July meal overnight. USDA reported a private export sale of 144,000 MT of soybean meal to Philippines this morning, with 97,000 MT or 2024/25 and 47,000 MT for 2025/26. Coffee Prices Sink as Brazil's Coffee Harvest Accelerates It's Game Time for Grains: What to Watch as Critical Period for Corn, Soybeans Begins Global Corn Demand Soars, U.S. Supply in Focus—Can You Capitalize on This Market Shift? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Crop Progress data showed 32% of the US soybean crop looming by Sunday, slightly ahead of the 31% average, with 8% setting pods. Condition ratings were steady at 66% gd/ex, with the Brugler500 index up 1 point to 369. Commitment of Traders data indicated managed money taking their net long position to just 425 contracts as of Tuesday, a 23,023 contract reduction on the week. In soybean meal, specs were a record net short of 131,938 contracts. The EU commission estimates EU soybean imports at 14.52 MMT for the 2024/25 MY from July 1, 2024 to June 30, up from 13.2 MMT last year. Jul 25 Soybeans closed at $10.28 1/2, down 3 1/4 cents, Nearby Cash was $9.84 1/4, down 5 1/2 cents, Aug 25 Soybeans closed at $10.25 1/4, down 6 1/4 cents, Nov 25 Soybeans closed at $10.18 3/4, down 2 cents, New Crop Cash was $9.70, down 2 1/4 cents, On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-07-2025
- Business
- Yahoo
Soybeans Round Out Rough Monday with Losses
Soybeans collapsed on Monday, closing with losses of 24 to 29 cents on Monday. The cmdtyView national average Cash Bean price is down 23 ¼ cents at $9.90 ¾. Soymeal futures were $5.20 to $6.30/ton lower at the close, with Soy Oil was down 61 to 82 points. Crop Progress data showed 32% of the US soybean crop looming by Sunday, slightly ahead of the 31% average, with 8% setting pods. Condition ratings were steady at 66% gd/ex, with the Brugler500 index up 1 point to 369. Why the Grains Sector is "Feeling Down" Monday Global Corn Demand Soars, U.S. Supply in Focus—Can You Capitalize on This Market Shift? It's Game Time for Grains: What to Watch as Critical Period for Corn, Soybeans Begins Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. This morning's Export Inspections report showed a total of 389,364 (14.3 mbu) of soybeans shipped in the week of 7/3. That is up 64.5% from last week and 32.3% above the same week in 2024. Egypt was the top destination of 88,641 MT, with 78,551 MT headed to Indonesia and 71,716 MT to Mexico. Marketing year shipments are now at 46.25 MMT (1.699 bbu), which is 10.5% above the same period last year. Early on Monday, reports indicated Indonesia has agreed to a deal to buy $34 billion of US goods including, corn soybean, and energy products. President Trump released a statement later in the day, raising the tariffs on Indonesian goods to 32% on August 1. Commitment of Traders data indicated managed money taking their net long position to just 425 contracts as of Tuesday, a 23,023 contract reduction on the week. In soybean meal, specs were a record net short of 131,938 contracts. Rains of half to an inch are expected over much of the Corn Belt this next week, with some localized totals in the 2-inch range. Lighter totals are forecast in northern parts of IN and OH, as well as much of MI, with the western portion of the northern Plains seeing little precip. Jul 25 Soybeans closed at $10.31 3/4, down 24 1/2 cents, Nearby Cash was $9.90 3/4, down 23 1/4 cents, Aug 25 Soybeans closed at $10.31 1/2, down 24 cents, Nov 25 Soybeans closed at $10.20 3/4, down 28 1/2 cents, New Crop Cash was $9.72 1/4, down 28 1/4 cents, On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
