SunSirs: Soybean Continued to Decline (October 14-18)

The soybean commodity index on October 20 was 90.14, unchanged from yesterday, down 23.27% from 117.47 (2013-03-29), the highest point in the cycle, and up 0.48% from 89.71, the lowest point on April 16, 2019. (Note: cycle refers to 2011-09-01 to now)

The domestic soybean market was weak, with an average price of RMB 3540 yuan / ton at the beginning of the week and RMB 3533 yuan / ton at the weekend, down 0.19%.

The market volume of domestic soybeans in the new season increased, and the price of soybeans in the main production areas in the new season did not perform well. Traders purchased about RMB 1.6 yuan / jin of new soybeans gross grain and RMB 1.75 yuan / jin of net grain. On October 17, the purchase price of the warehouse directly under Dayangshu was RMB 1.69 yuan / kg, with an estimated purchase of 600 tons; the purchase price of the branch directly under Dayangshu was RMB 1.69 yuan / kg, with an estimated purchase of 600 tons. In the new season, the purchase price of domestic soybeans continued to be low, farmers were reluctant to sell, and the market was relatively cold. The market in Henan and Anhui is stable, with the mainstream price of RMB 2.1-2.3 yuan / Jin; the mainstream price of RMB 2.08-2.1 yuan / Jin in Henan.

Data: according to USDA's soybean export report released on October 18, the net annual soybean sales volume of the United States was 1.601 million tons in the week ended October 10; the net soybean sales volume to China in 2019 / 2020 was 850500 tons, with the shipment volume of 136000 tons, and the total amount of unfinished orders and shipment orders was 5.6408 million tons, compared with 4.7903 million tons last week.

Analyst of agricultural products from SunSirs believes that: the number of soybeans listed in the new season is gradually increasing, and the price of soybeans purchased by the State Treasury is gradually open, so it is hard to say that the soybean market is optimistic, and it will still be weak in the future.

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