As the market digests the previous round of rumors of Chinese soybean destocking, a fresh rumor of state stockpiler to release 4-5 million tons of national soybean reserves began to circulate.
Several trade sources said that the government could start selling up to 5 million tons of its soybean reserves between April and May this year to help cool rising soybean and soymeal prices in the domestic market.
The figure is up from the previously rumored 3 million tons.
Despite the lack of any official confirmation, many market participants expect these stocks will be allocated to state crushing facilities owned by Cofco and Sinograin.
Meanwhile, China is also rumored to unleash 300,000 tons of soybean oil stocks to combat rising inflation in the edible oil market amid stronger global crude oil price rally.