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Increased downstream procurement demand leads to continued bottom-range fluctuations in soybean meal inventories, strengthening factories' willingness to maintain prices.
Brazil's soybean harvest is nearing completion, and the ongoing record-breaking production pressure continues to be realized, coupled with improved weather conditions in the U.S. Midwest that favor soybean planting progress, with increased area expectations boosting the outlook for yields.
The volume of imported soybeans arriving at ports continues to grow, and after steady recovery in crushing volume at oil mills, soybean meal production has also increased, but demand remains limited due to the off-season for livestock and ongoing losses in pig and egg chicken farming.
However, the rise in U.S. soybean futures has increased the cost of imported soybeans, and recent increased downstream procurement demand has caused soybean meal inventories to fluctuate at low levels, strengthening mills' willingness to hold prices, leading to a slight increase in soybean meal prices.
(Feed Industry Information Network)