SunSirs: Domestic Soybean Price Has Increased Recently

On March 17, the soybean commodity index was 102.04, up 4.68 points from yesterday, down 13.14% from the cycle high of 117.47 (2013-March-29) and up 14.06% from the low of 89.46 on November 12, 2019 (Note: Period refers to 2011-Septmber-01 till now). 

Since March, domestic soybean purchase and sales have resumed, and prices continue to rise. Up to March 17, the average price of domestic soybean was 4000 RMB/ton, up 9.09% from early March.

Products: During the epidemic period, as the traffic control in some areas of Heilongjiang province, the purchase and sale of soybeans in the village was relatively cold. Since March, the purchase and sale of domestic soybeans have recovered somewhat. On the other hand, due to the increase in transportation costs, and the increase in vegetable prices wherein the domestic soybeans are mainly used for food and soybean product, domestic soybeans continue to rise, and the purchase price of gross soybeans in Heilongjiang exceeded 2 RMB/kg. Domestic soybean loading mainstream traders quote 2.05-2.1 RMB/kg. The central reserve grain poplar direct asset bank was listed to purchase domestic soybean in 2019 at 2.1 RMB/kg, which was supported by bullish news and the price of domestic soybean remained high.

Selling Area: With Heilongjiang main producing area soybean price rise is different, selling area soybean market is relatively stable. The loading price of soybeans in Anhui is about 2.45 RMB/kg. Soybean loading price in Shandong is about 2.42 RMB/kg. Henan area soybean loading price is about 2.42 RMB/kg.

Import: 

3030 RMB/ton, delivered at Dalian port, Liaoning

3030 RMB/ton for delivery at Tianjin port

3030 RMB/ton for delivery at Qingdao port, Shandong

3030 RMB/ton free at Rizhao port, Shandong

3030 RMB/ton for delivery from Lianyungang, Jiangsu

3030 RMB/ton free at Nantong port, Jiangsu

3040 RMB/ton for delivery at Shanghai port

3040 RMB/ton, delivered at Huangpu port, Guangdong

Data: U.S. soybean exports inspected for the week ended March 12, 2020 were 436,358 tons, compared with a revised 579,102 tons the previous week and an initial value of 572,416 tons, according to USDA data. U.S. soybean exports inspected 849, 700 tons for the week of March 14, 2019.

Market Forecast: SunSirs agricultural analyst Li Bing thinks that at present domestic soybean prices have been high, but with limited up space. Because domestic soybean supply is insufficient, and terminal soybean products rigid demand support, in the short term, domestic soybean prices are still strong.

If you have any questions, please feel free to contact SunSirs with marketing@sunsirs.com.