SunSirs: Agriculture: Domestic Soybean Prices Continue to Be Firm

1. Price Trend

Soybean Commodity Index on November 22 is 90.39, which is the same as yesterday. It is 23.05% lower than the highest point at 117.47 on March 29, 2013 in the cycle and is 1.04% higher than the lowest point at 89.46 on November 12, 2019 in the cycle (Note: The cycle refers to September 1, 2011 to present)

According to data from SunSirs, the domestic soybean price rises slightly this week. At the beginning of the week, the average domestic soybean price is 3,523 RMB/ton. On the weekend, the average domestic soybean price is 3,543 RMB/ton, with an increase by 0.57%.

This week, the supply of new-season and high-quality soybeans in the northeast is tight. The process for acquiring soybean among villages is relatively difficult. The prices of soybean have slightly risen and continued to be firm. The material flow in the market is still relatively slow.

2. Market Analysis

Main Producing Areas: The price of new-season soybean grain in Suihua, Heilongjiang Province is about 3.4 RMB per kilogram. The price of commodity soybean in this area is 3.56-3.6 RMB per kilogram. The price has a slight increase. The price of Mudanjiang’s new season gross grain is about 3.4 RMB per kilogram, and the net grain is 3.6 RMB per kilogram. The price of Qiqihar region’s new season gross grain is 3.4-3.6 RMB per kilogram, and its net grain is around 3.6-3.7 RMB per kilogram. The price continues to be firm.

Marketing Area: The mainstream purchase price in Shandong is 4.6 RMB per kilogram, and the selling price excluding delivery is 5 RMB per kilogram. The prices in Henan and other places have risen. The mainstream price is 2.3to 4.4 RMB per kilogram. The market is generally trading goods. Farmers are more bullish with less willingness to sell goods at this stage.

Data: Up to November 14, the United States ’net soybean export sales this year is 1,516,700 tons, and the next year’s net soybean export sales is 0 tons. That week, the United States exported 1,707,400 tons of soybeans this year.

3. Market Forecasting

Li Bing, an agricultural product analyst at SunSirs believes that terminal demand is sluggish, and farmers are reluctant to sell. In the short term, domestic soybean prices will fluctuate slightly, or they will continue to be firm.

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