China soy meal demand rising
Demand for soybean meal in China, the world's biggest consumer of the animal feed, may rise on expectations hog inventories will expand, the China National Grain & Oils Information Center said.
“The market is increasingly upbeat on the expectation of rising soybean meal consumption,” said the Centre. At the end of March, breeding sows made up 11% of the country’s total hog inventory, compared with the normal 9%, indicating higher capacity for reproduction.
Demand for soybean meal has a stable base because it’s not easy to alter the type of feed given to pigs, said Chen Baomin, analyst at Jilin Grain Group Co., said. If expectations build for a price rise, feed mills buy more to boost inventories.
China’s inbound soybean shipments may reach a record 5.5 mln t in May, up from about 4.3 mln t this month, the Center said. Imports in June may also be 5 mln t before declining to 4 mln by July, it said.
Source: Business Week
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