SunSirs: Domestic Soybean Price Went Up (March 11)

Since March, high quality soybean grain source is scarce. Domestic soybean prices ushered in a substantial rise. The average price of domestic soybean at the beginning of the month was 3,666 RMB/ton. On March 11, the average price of domestic soybean was 3,816 RMB/ton, up by 4.09%.

Since March, the construction of terminal soybean products has resumed one after another, and the demand for domestic soybeans has increased. Due to the impact of logistics in the main production area of Heilongjiang province, the supply of high-quality soybean source is tight, and the price of soybeans continues to rise substantially. On the other hand, in most areas of Heilongjiang province, the price of commodity beans for loading is as high as 4,200 RMB/ton, 400 RMB/ton higher than before the festival. At the same time of high soybean prices, market purchases and sales have been gradually recovered, due to the support of the end rigid demand, coupled with the market soybean supply shortage, soybean prices continue to stay high.

Numbers: The March supply and demand report from the U.S. department of agriculture (USDA) showed that China's 209/20 soybean imports are expected to be 88 million tons, compared with a February forecast of 88 million tons.

Brazil's 209/20 soybean production is expected to be 126 million tons, compared with a February forecast of 125 million tons.

Soybean production in 209/20 is forecast at 54m tones, compared with 53m tones in February.

U.S. 209/20 soybean production is expected to be 3.558 billion bushels, compared with a February forecast of 3.558 billion bushels.

Market Forecasting: SunSirs agricultural analyst Li Bing thinks that terminal soybean products has demand support, coupled with a shortage of supply. Therefore, in the short term, domestic soybean prices fall space is limited. As the current soybean prices continue to stay high, with the market up less space. It is expected to stabilize the market in the near future.

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