On June 10, Sinograin's official website issued an announcement that soybeans will be auctioned at 10:00 am on June 12, with a production period of 2017 and a quantity of 60,486 tons. Although it differed greatly from the market's rumored first shot of 188,000 tons, it finally arrived as scheduled.

According to SunSirs monitoring, this year, due to the increase in logistics costs and the sharp increase in terminal demand, the price of domestic soybeans has risen all the way since March, with an increase of more than 30%. The loading price of domestic soybeans in some regions in May exceeded 5,200 yuan/ton, which has repeatedly created the record high, the continuously rising prices of domestic soybeans, and the tight supply have caused terminal manufacturers to look forward to the State Reserve’s soybean auction. Market news of the State Reserve’s soybean auctions is frequently reported. On June 10, the first auction of soybean auctions was officially confirmed on June 12.

Every year in the new season soybean planting period in May, there is less domestic soybean surplus in the new season in the market. The country will carry out round storage, sell old crop soybeans, and temporary storage soybean auctions will start one after another, usually from May to August, or even to October. Soybeans are listed in the new season, and the State Reserve Bank purchases them and reserves them.

Combining the statistics of the State Reserve's soybean auction volume in 2016-2019 and the monthly domestic fluctuations in 2017-2019, we can see that the price of the temporary reserve soybean auction is generally lower than that of the domestic soybean market, and the price difference with the domestic soybean market is larger. 

In 2017, the temporary soybean auction was late, just in time for the new soybean listing. The price was affected by multiple factors and the representativeness was not strong enough. From 2018 to 2019, during the period of temporary storage of soybeans in the market, the domestic soybean market price did not increase or decrease significantly, and the increase or decrease did not exceed 1 point. The period of large changes in the domestic soybean market is still October. After the season soybeans are on the market.

State Reserve soybean enters the market

SunSirs agricultural product analysts believe that: Since June, due to insufficient supply of soybeans in the main production areas, coupled with the decline in demand for terminal soybean products, the trend of domestic soybeans has soared toward the end.

According to the 2016-2019 State Reserve soybean auction, the first auction volume was 300,000 tons, the first 60,000 tons of temporary storage soybeans auctioned on June 12, this year, the gap is indeed large, and the impact on the soybean market is small. In recent years, the auction price of soybeans has been generally low. This year’s temporary soybean price is expected to be far below the current 5,200 yuan/ton in Heilongjiang’s main production areas. Therefore, the price of domestic soybeans in the future market may be adjusted back to a lesser extent. 

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