China's soybean processors fear that the spread of the corona epidemic in major exporting countries will cut off supplies from there. Some oil mills in China have therefore already reduced their processing.
In Brazil and Argentina, industry representatives are already warning of further interruptions to the flow of supplies to the ports due to the many controls and restrictions caused by corona tests. In February there had already been delays due to heavy rains in Brazil, which led to China's inventories now falling to a record low.
The wages in the center of soybean processing in northern China have risen to their highest level in eight years in the past two weeks.
Shipments from Brazil to China's ports are currently working without problems, but delivery and removal by truck is difficult in both countries. China's state soybean stocks are meanwhile significantly smaller. On March 23, 3.316 million tons were reported, which is the smallest stock since August 2010. Soybean meal stocks are also at a 10-year low.
After the corona epidemic in China in January, the economy there is now being pushed again.A month ago, the sellers ran after the customers, now it's the other way round. There is a shortage of goods and customers are lining up and begging for soybean meal.
Source
HANSA Terminhandel
