News summary

The duty-paid cost of domestic imported soybeans rose significantly due to the increase in CBOT soybean futures prices and Brazilian soybean premium prices, increasing by 129 yuan/ton on a month-on-month basis and by 427 yuan/ton on a month-on-month basis. Future soybean costs are expected to maintain strong support for the domestic soybean meal market.

Newsletter text

[The cost of domestic imported soybeans has increased significantly] Recently, the imported soybean market has shown an increase in costsbestcasinofreespinstrends. It is observed that as of May 21, the duty-paid import cost of Brazilian soybeans shipped in June has reached 4198 yuan/ton, an increase of 129 yuan/ton from last week and a month-on-month increase of 427 yuan/ton. This phenomenon is mainly affected by the dual impact of CBOT soybean futures prices and Brazilian soybean premium prices, which in turn promotes the rise of the domestic oil meal market. CBOT soybean futures prices rose due to floods in Rio Grande do Sul, Brazil. The market was worried about loss of production and slowing the pace of exports, and the U.S. soybean futures prices rose rapidly. With the arrival of a critical period for soybean growth in North America, weather factors have become the focus of speculation. Coupled with the relatively low futures price of U.S. soybeans, investors have been attracted. According to CFTC data, net excess funds on soybean meal and soybeans continue to increase. In addition, CBOT soybean futures prices were further boosted due to concerns about crop weather in the Black Sea region and humid weather during the US corn growing season. Judging from the situation of Brazilian soybean price increases and discounts, CNF prices have maintained an upward trend since the Spring Festival, and have hit a new high in the past month. The reasons driving its CNF offer to rise, exceptbestcasinofreespinsIn addition to the aforementioned floods, there is also good sales progress of Brazilian soybeans. Improved local crushing demand in Brazil and continued cost-effective advantages compared with U.S. soybeans have led to strong performance in Brazilian soybean export sales. According to Abiove statistics, Brazil's soybean exports from January to April 2024 increased by 10% year-on-year to 37.69 million tons. It is worth noting that the trade profit of Brazilian soybeans is higher than that of corn, prompting local traders to prefer the purchase and sales of soybeans and push up FOB prices. The Port of Paranagua soybean price in June reached 35 cents per bushel, setting a new annual record. Looking forward, although the CBOT soybean futures price fluctuates due to the weather, considering the acceleration of Brazilian soybean sales and the decrease in the number of soybeans available for sale in the future, its CNF offer continues to be supported. Before the launch of U.S. soybeans, Brazilian soybeans, as the main source of imported soybeans to China, are expected to provide strong support for the forward prices of the domestic soybean market.