SunSirs: Poor Terminal Demand, China's Soybean Meal was Weak in February

Soybean meal prices in February went up and down, and the price fluctuated mainly within a narrow range. During the Spring Festival, the price was stable, and the prices before and after the holiday were all fluctuating. At the beginning of the month, the average market price of soybean meal was 3,793 yuan/ton, and on the 24th, the average price of soybean meal was 3,822 yuan/ton. The overall price rose by 0.77%.

In 2020, the price of soybean meal remained flat in the first quarter. In addition to the decline in soybean meal prices in January, the soybean meal market rebounded in February, and the price of soybean meal rose 15% in March. The second quarter fell consecutively, the third quarter and the fourth quarter both fell for one month and rose for two months. The highest increase in the whole year was March. The price of soybean meal in January 2021 rose by nearly 10%. Beginning in February, soybean meal still maintained a slight downward trend. During the Spring Festival, affected by the bullishness of the US soybean meal, soybean meal ushered in a supplementary increase after the holiday.

Poor demand for terminal feed in February, soy meal prices rose under pressure

Beginning in February, the stock market for terminal feed manufacturers ended, big pigs were intensively sold, pig prices continued to fall, terminal demand was weak, and soybean meal prices were weak. On the eve of the Spring Festival, soybean oil plants started to shut down plans one after another, supply was tight, and soybean meal spot prices occasionally rebounded slightly.

During the Spring Festival, the US soybeans in the foreign market performed strongly supported by bullish factors. Soybean meal ushered in an increase on the first day after the holiday. Due to the fall in corn prices, the end of stocking at the terminal feed mills, and weak demand, soybean oil plants resumed operations one after another. The price mentality was normal. Soybean meal continued to climb after the rise. Driven by the external disk, the overall market for soybean meal after the holiday was higher than before the holiday.

Soybean meal agricultural products analysts believe that the surge in soybean meal prices in March 2020 was driven by logistics costs and supply is tight. In March 2021, soybean meal is still in the off-season for consumption, and the market rises weakly, making it difficult to replicate the surge in 2020.

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