China's monthly soybean imports hit a record high of 10.08 million tons
In July 2017, China's soybean imports reached a record high of 10.08 million tons. The cumulative import of soybeans in the first seven months was 54.89 million tons, an increase of 19% year-on-year. It is expected that soybean imports in 2016/17 will exceed 91 million tons. From the perspective of demand, without a significant recovery in domestic feed demand, domestic mixed meal output continues to decrease substantially, and the increase in soybean meal demand is one of the main reasons for the increase in domestic demand for imported soybeans.
However, judging from the current domestic soybean product market situation, the market changes caused by excessive soybean imports have begun to appear. We believe that intensified competition in the industry and enterprises occupying the space for demand growth in advance are the main reasons for the excessive growth of imports.
Losses are severe, and pressure on soybean crushing companies is increasing
At present, domestic soybean crushing capacity is severely surplus. Only by guaranteeing a high operating rate can enterprises occupy their existing market space, so they often face pressure from high inventory and sales difficulties.
However, since March 2017, imported soybean crushing has entered a loss stage. The loss was the most serious in May and June. The loss was once close to 400 yuan / ton. The loss situation in July eased, but the current crushing loss per ton is still at 200. Around Yuan. Although most oil mills have adopted measures to control operating rates and sales rhythms to curb soybean meal prices from falling too fast, under the situation of excessive supply, the loss pattern is difficult to change in the short term.
