SunSirs: Suppression of Futures Market, Chinese Domestic Soybeans Continue to Pull back

At the beginning of March, China's domestic soybeans were supported by multiple factors, and the price continued to rise sharply and once rushed to the 3 yuan mark. Beginning on the 7th, due to the poor performance of Liandou and continued to fall, domestic soybeans gradually recovered. On March 18, the average market price of domestic soybeans was 5780 yuan/ton, an increase of 5.09% from the beginning of March.

Domestic soybeans and futures

Beginning in March, extreme weather speculation in the United States, poor weather in South America, a decline in soybean harvesting, delays in the arrival of Brazilian soybeans, supported by multiple bullish factors, even soybeans ushered in a surge, futures prices continued to rise, and domestic soybeans followed the market. The purchasing enthusiasm of soybean products factories increased, and the loading price of domestic soybeans once exceeded the ceiling of 3 yuan, setting historical highs repeatedly.

After the first ten days of March, the bullish factors were exhausted. The weather in South America improved. Soybean harvesting progress was normal. CBOT soybeans fell one after another. Due to the relatively high cost of soybean purchases by traders in the early stage, the price is mainly due to the decline in market transactions, the spot market is relatively strong, and the correction rate is average.

SunSirs agricultural product analysts believe that domestic soybeans are at a historical high and the market outlook is lacking momentum because the supply of new soybeans is still tight and the decline is limited. It is expected that domestic soybeans will continue to be weak in the future.

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