SunSirs: Poor Demand, Chinese Domestic Soybeans Continue to Decline

Since the end of March, the domestic soybean market began to fall for more than half a month. As of April 13, the average domestic soybean market price was 5,600 yuan/ton, which was 4.27% lower than the price on March 24.

Domestic soybeans have risen for 7 consecutive months in 2020, mainly due to the increase in logistics costs, rigid demand support, and continuous price increases. Although soybean prices in the first quarter of 2021 also maintained an upward trend, the apparent increase was not as large as in 2020. Coupled with the weakening of the soybean futures market, the price increase of domestic soybeans has been suppressed. At the end of March, domestic soybeans started a downward trend. By April 13, the price of domestic soybeans had fallen to about 2.8 yuan/kg, a drop of more than 4%.

Terminal demand weakens, domestic soybeans enter the downward channel

In the first quarter, the domestic soybean market in Heilongjiang, the main producing area, performed relatively strong, and prices continued to stay high. Beginning in April, because the price of domestic soybeans was too high, the terminal soy product factory's purchasing enthusiasm declined, and the market transaction volume fell. In addition to the poor soybean futures market, traders are eager to withdraw funds, destock, and are willing to sell soybeans, but lack confidence in the price. The price of domestic soybeans has been loosened and has continued to decline, from the original 2.9 to 2.8 yuan/kg. Gross grain purchases The price has dropped from the original 2.8 yuan/kg to 2.65 yuan/kg.

SunSirs agricultural product analysts believe that the spring planting is approaching, and the new season soybean sales are coming to an end. Farmers have no time to sell, and the price of domestic soybeans will continue to weaken in the future.

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