USDA raises global 21/22 soybean ending stocks as Chinese imports rise
The US Department of Agriculture increased its projection of global oilseed carry-out in 2021/22 marketing year as Chinese soybean imports will be higher than previously expected.
Global oilseed ending stocks are projected at 121.9 million tons, up 1.4 million, USDA said in the latest World Agricultural Supply and Demand Estimates (Wasde) on Wednesday.
Soybean ending stocks for 2021/22 marketing year are raised to 94.67 million tons, up 2.29 million tons from October Wasde.
“Soybean stocks account for most of the change with an increase to China’s stocks based on a revision to 2021/22 imports,” USDA highlighted.
China’s soybean imports in 2021/22 increased by 1.57 million tons to 91.57 million tons.
Domestic soybean futures hit 3-wk high amid short covering, hog futures slide further
No.1 (non-GMO) soybean futures on China’s Dalian Commodity Exchange jumped nearly 2% for the second consecutive day as traders continued to close out their short positions, which subsequently pushed up prices.
The main contract (January 2023 delivery) reached the highest level in three weeks by Thursday’s close.
It also lent support to No.2 (GMO) soybean futures as well, which gained roughly 1% across the board.
Moreover, rapeseed futures complex on Zhengzhou Commodity Exchange (ZCE) remained bullish after China’s Ministry of Agriculture and Rural Affairs released a bullish view on the edible oil market with a lower-production outlook for 2023.
Rapeseed oil and meal futures were up more than 1% on the day.
On the contrary, DCE live hog futures slipped for three sessions straight since Tuesday this week. The main contract has edged closer to a key support level of 21,000 yuan/ton ($2,919/ton) which was last visited four months ago.
The hog industry in China is facing strong pressure from the government to push cash prices lower.