Soybean prices remain high despite planting increase

Domestic non-GMO soybean prices in Heilongjiang remain elevated despite an increase in this year’s planted area and weaker demand for food-grade soybeans. Prices in the province are generally quoted between 6,100-6,300 yuan/ton ($916-946/ton).

Farmers have increased soybean production this year in response to higher subsidies and some delays in corn planting. Heilongjiang’s Ministry of Agriculture estimates that corn planting in the region was 10-15 days delayed compared to previous years.

The Chinese government set a target to boost oilseed production in the next five years after domestic soybean output fell roughly 14% in 2021. With more subsidies, China’s soybean production is expected to rebound above 19 million tons this year and rapeseed output is also estimated to hit a record high of 14.5 million tons.

As soybean planting wraps up, weather conditions in the region are creating a difficult start for the crop. Over the past 10 days, the precipitation levels are in some areas 200-400% higher than average. Temperatures are also relatively colder than seasonal averages. Soil moisture levels in some areas are now excessive and some fields are waterlogged.

Precipitation levels, percent of normal, May 21st-31st