From Reuters via gCaptain, October 18:
China’s soybean stocks are set to tighten further as delays in shipments from the United States deepen shortages of key animal feed ingredient soymeal, keeping prices at record highs.
Ships carrying up to three million tonnes of U.S. soybeans which were scheduled to arrive this month and in November are likely to get delayed by about 15 to 20 days, two soybean traders told Reuters.
While U.S. cargo delays are likely to weigh on benchmark Chicago soybean futures Sv1, tight soymeal supplies will buoy Chinese hog prices. Prices in Guangdong, one of China’s largest pork consuming regions, hit one-and-half year highs this week and have risen nearly 60% since March.
“China’s soymeal supply is very tight at the moment and it is getting worse with U.S. cargoes arriving late,” said one Singapore-based trader at an international trading company, which owns soybean crushing plants in China.
“Soymeal prices are going to remain high as this tight supply situation will continue until the year-end,” the trader added.
In 2022/23, China, by far the world’s biggest soybean importer, will ship an estimated 98 million tonnes of the oilseed, according to the U.S. Department of Agriculture, which is crushed to make cooking oil and protein-rice raw material for animal feed soymeal.
“Hog farmers are looking for alternative protein sources as they have reduced the amount of soymeal in feed,” said a second Singapore-based trader. “This is going to support pork prices.”
China’s consumer prices rose to 29-month highs in September, driven mainly by pork prices.
Higher hog prices have also boosted demand to raise more pigs and raise them to heavier weights, increasing demand for animal feed....
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