SunSirs: Soybean Meal Market Strengthened in August, Overall Price Rose by 2.27%

Since August, there has been a game of long and short news. Soybean meal has experienced a callback period, and the overall market has risen mainly. At the beginning of the month, the average market price of soybean meal was RMB 3,632/ton, and at the end of the month, the average price of soybean meal market was RMB 3,715/ton, and the overall price increased by 2.27%.

Long-short game August soybean meal rises overall

At the beginning of August, soybean meal began to continue the rising market at the end of July. On the 5th, it has shown a downward trend, and the price has corrected slightly. The main reason is that terminal demand is weak, and the pressure on raw material imports of soybeans is still there. China imported 10.722 million tons of soybeans in June, an increase of 11.6% compared with 9.61 million tons of soybeans imported in May. Due to the rapid increase in the number of imported soybeans, soybean meal stocks continued to be at the front line of one million tons, and the increase was mainly driven by external disks. Therefore, the continued upward momentum was insufficient and there were successive corrections.

Beginning on August 7, soybean meal once again ushered in a rising market, which is still the U.S. soybeans pulling up, long-short game, oscillating upward. In mid-August, due to the bullish USDA report, U.S. soybeans rose sharply, and Chinese buyers' purchase orders for U.S. soybeans increased, and soybean meal rose again. On August 16, soybean meal futures rose more than 2% in a single day, and the spot rose more than 1% in a single day.

After August 17th, soybean meal began a continuous decline in the market, and the market continued to fall. The positive factors for the US soybeans materialized, the rainy weather appeared, and the bad news hit, and the US soybeans, which continued to rise sharply, began to pull back. Even the soybean meal fell following the market, and the domestic soybean meal spot was linked with the futures market, and the price continued to fall for nearly a week, with a drop of 2.73%.

At the end of August, the rigid demand for terminal feed was supported, and the inventory pressure was less. Soybean meal once again staged a rebound in the market, and the price of soybean meal rose by 1.64%.

The harvest of the US soybeans in September is imminent, and the external profit factor is still there. Soybean meal can be expected to rise in the future.

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