China's soybean crush margins turn negative for first time since August
Reporting by Naveen Thukral Editing by Joseph Radford, Reuters
November 29, 2018
SINGAPORE, Nov 29 (Reuters) - Soybean crush margins in China have turned negative for the first time since early August, pressured by lower demand for the soymeal they churn out following an outbreak of African swine fever and high domestic bean inventories.
African swine fever, deadly to pigs but not harmful to people, has spread rapidly through China, with more than 70 cases reported across farms since early August. Soymeal is used to make animal feed.
Crushers in the country’s eastern province of Shandong, the hub for soybean processing, are making a loss of 29 yuan ($4.18) a tonne JCI-SBMG-SHDNI compared with a profit of 60 yuan earlier this week, according to data provided by Shanghai JC Intelligence.
“There are multiple factors at play, demand has gone down because of the swine fever and stocks are high,” said a Singapore-based senior executive at an international trading company.
“Buyers are destocking,” he said, declining to be identified as he was not authorised to speak with media.