China: Situation of soybean market is improving

Complicated situation in China, due to soybean processing plants that stopped working improves

This improvement reduces the risk of denial of soybean contracts already concluded.

 

Many large businesses have begun their activity again, gradually reducing soybean stocks and lowering the soybean price, which has risen to a peak since May 2017.

 

The further development of the situation will very much depend on demand for soybeans in the domestic market. Account must also be taken of the fact that soybean meal in China is now at the highest level since 2010.

 

According to Chinese analysts, the crisis has already passed and now the industry is stabilizing. Also, reduced import demand for soybeans is expected by the end of the year.