October 8, the value of the futures contract for soybean meal on the Dalian Commodity Exchange (China) rose to a record 3,457 yuan ($ 501.37) per tonne, reports Grain On-Line, citing Reuters.
Soybean meal is becoming more expensive due to restrictions on the import of soybeans from the United States, which were previously the largest supplier of this crop to China. In July, Beijing imposed the importation of a number of American goods, including soybeans, 25% duty in response to the introduction of the White House duty on imports of Chinese goods in the United States.
Brazil retains a high premium for the purchase of soybeans due to strong demand for oilseed from China, which, in turn, also contributes to the strengthening of domestic prices for soybeans, reports Soybean & CornAdvisor. China's high demand for Brazilian soybeans can contribute to an increase in sowing areas of 3-5%, so that soybean production in Brazil in 2018/19 MY can reach 120-123M tons.
