1. Price Trend

On December 20, the soybean commodity index was 91.24, which was the same as yesterday. It is 22.33% lower than the highest point of the cycle at 117.47 on March 29, 2013) and it is 1.99% higher than the lowest point at 89.46 on November 12, 2019 (Note: Period refers to September 1, 2011 to present).

According to data from SunSirs, domestic soybean prices fell slightly this week. At the beginning of the week, the average domestic soybean price was 3,583 RMB/ton. On the weekend, the average domestic soybean price was 3,576 RMB/ton, and the price fell by 0.19%.

2. Market Analysis

Soybeans in Northeast China this week ended their upward trend. With the end of the year approached, the enthusiasm for terminal stocking has increased. However, due to the rise in soybean prices in the early stage and general market acceptance, the upward assistance of soybean prices has been hindered, and prices have shown a downward trend.

Main Producing Area: Suihua, Heilongjiang's soybean soy grain price in the new season is about 3.48 RMB/kg. Commodity beans offer 3.6 RMB/kg and the price fell slightly by 0.1-0.2 RMB/kg.

Mudanjiang new season gross grain price is about 3.4 RMB/kg. And the net grain price is about 3.6 RMB/kg.

The new season gross grain price in Qiqihar region is 3.4 RMB/kg, and the price of tower grain is 3.6-3.7 RMB/kg.

Sales Area: The mainstream purchase price in Shandong is 3.8-4 RMB/kg. And the price of vehicle is 4-4.6 RMB/kg. The price is stable.

Meanwhile, in Henan province, Anhui province and other provinces, the mainstream price was 4.3-4.56 RMB/kg. And the price keeps stable as well.

The Distribution price of Port Soybean: On December 20, the delivery price of Dalian Port in Liaoning Province was 3,200 RMB/ton.

The delivery price of Tianjin Port in Tianjin Province was 3,200 RMB/ton.

The delivery price in Shandong Port in Qingdao was 3,200 RMB/ton.

The delivery price in Shandong Rizhao Port was 3,200 RMB/ton.

The delivery price of Jiangsu Lianyungang Port is 3,200 RMB/ton.

The delivery price of Jiangsu Nantong Port is 3,200 RMB/ton.

The delivery price of Shanghai port is 3,210 RMB/ton.

The delivery price of Huangpu Port of Guangdong is 3,210 RMB/ton.

Data: According to the analysis agency APK-Inform, Russia's soybean exports in 2019/20 may reach nearly 1.2 million tons, a year-on-year increase of 47%.

APK-Inform said that except the active demand from Chinese importers, Russia's soybean output hit a record high and will boost soybean exports.

In October 2019, Russia's soybean exports increased by 10% month-on-month to 690 million tons, which was the second highest record in history over the same period.

3.Market Forecasting

Li Bing, an agricultural product analyst at SunSirs.com believes that the lack of purchase of grain sources in the main producing areas makes it difficult for soybean prices to rise in the short term. Therefore, the soybean prices continue to be weak and stable.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com