Soybean meal continued to perform poorly in March, and the rise was weak. The bad news led to a sharp decline in soybean meal as a whole, with prices rising towards the end of the month. At the beginning of the month, the average market price of soybean meal was RMB 3,700/ton. On the 22nd, the average price of soybean meal market was RMB 3,340/ton, and the overall price dropped by 9.73%.

Soybean meal prices rose sharply for two weeks in January 2021, with a maximum increase of 10%. After the sharp rise, the price of soybean meal ushered in a decline, falling for two consecutive weeks. Since February, soybean meal has continued its downward trend. During the Spring Festival, under the influence of U.S. soybeans, soybean meal ushered in a supplementary increase after the holiday, and the price rose slightly for two weeks. Soybean meal started a continuous decline pattern in March, falling for three consecutive weeks, with the highest drop of more than 7% and the overall drop of more than 11%.

Negative lead, weak rebound of soybean meal in March

Beginning in March, soybean meal stocks were under pressure due to its own inventory. According to the soybean meal inventory chart in the first quarter, it can be seen that soybean meal stocks continued to rise after the Spring Festival. In mid-March, soybean meal stocks had reached 870,000 tons. The demand for terminal feed has entered a period of off-season, and the fundamentals are dominated by negative fundamentals, and the market has been declining. Every time soybean meal has an upward trend, it is brought back to its original shape by negative factors. It can only be seen that soybean oil, which is the downstream of soybeans, rises above 10,000, and rapeseed meal, which is also a feed ingredient, is rising. Due to the impact of African swine fever, demand for soybean meal is flat, and inventories continue to rise.

At the end of March, the price of soybean meal has been falling from 3,700 yuan/ton to 3,300 yuan/ton. Soybean oil plants have successively started their shutdown and maintenance plans. The pressure on soybean meal stocks has eased, and the price of rapeseed meal has been boosted. At the end of the month, the price of soybean meal has stopped falling and is on the rise.

SunSirs agricultural product analysts believe that soybean meal has fallen sharply in the early stage, and the price is already at a low level. The second quarter will enter the US soybean speculation season, and the soybean meal market is expected to stop falling and pick up, swapping with the soybean oil market.

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