SunSirs: Inventory Pressure Doubles, China’s Soybean Meal Market Continues to Bottom out in June

　　Beginning in June, due to negative factors, after a tentative rise in soybean meal at the beginning of the month, the diving market started, and the price fell rapidly, falling deeply for more than a week, with a decline of more than 6.5%. As of June 23, the average market price of soybean meal was 3,400 yuan/ton, down 5.36% from the beginning of the month.

　　According to the weekly fluctuations from March 29 to June 20, 2021, it can be seen that in the last week of March 2021, supported by the bullish factors in the US soybean planting report, soybean meal bottomed out, with an increase of nearly 4%. Soybean meal began to fall after a sharp rise in the first week of April, with a drop of more than 1.5%. After the Ching Ming Festival, the outer oil futures price supported, and soybean meal ushered in a two-week consecutive rise, with an overall increase of close to 5%. After May Day, soybean meal began to oscillate and fall, and the rise was weak. By June, the terminal pigs performed poorly, the demand was sluggish, and the decline of soybean meal expanded. In the week of June 14, the weekly decline of soybean meal fell sharply by 6.57%.

　　US soybeans pull up, soybean meal ushered in a short-term surge

　　At the beginning of June, soybean meal began to show weakness. A week later, in the US soybean dry weather is expected to increase, soybean futures prices in foreign markets continue to rise, domestic soybean meal futures rose with the market, soybean oil plants due to weak terminal demand, one after another stop for maintenance, support by bullish factors, soybean meal Spot prices rose against the trend and returned to rising prices with an increase of more than 2%.

　　Inventory pressure doubled, soybean meal fell after the Dragon Boat Festival

　　On the eve of the Dragon Boat Festival, soybean meal was at a high level overall. During the holiday season, the market for external oils and fats plunged sharply, and after the holiday, the oils and fats began to fall sharply and continued to fall. Affected by the oil and fat market, soybean futures prices on the external disk fell, coupled with the terminal pig price fell below 6 yuan, demand sluggish, soybean meal inventory pressure was high, as of the week of June 18, soybean meal stocks increased to 1.17 million tons, a record high. Suppressed by multiple negative factors, soybean meal started a rapid downward trend, with a drop of more than 6%.

　　Due to low terminal pig prices, sluggish feed demand, and greater pressure on soybean meal inventory, it is expected that soybean meal will have limited room for growth in the future.