Sinopec News: 100,000 tons of soybeans auction to begin soon, with domestic soybean prices gradually softening

March 26, a 100,000-ton auction of domestically produced soybeans from the 2022 crop is having its impact steadily work through the market. The tightness in spot soybean supply is expected to ease, and practitioners’ sentiment is clearly split. The front-month futures contract for Soybean No. 1 saw its decline widen, and the market’s wait-and-see atmosphere is growing stronger. After nearly three months of gains, soybeans in the Northeast producing areas are showing a notable price inversion versus prices in major sales-demand areas. At the grassroots level, available quantities for sale are limited. Large and mid-sized traders, as outbound activity sentiment starts to improve due to news-driven disruption, have begun to send out goods. In some regions, prices have started to loosen downward; the reference for the pullback range is 0.02–0.05 yuan per jin. Purchases in sales-demand areas are cautious due to the cost inversion, and currently the wait-and-see sentiment is further intensifying, with most buyers consuming existing inventory. Domestic spot soybean prices are expected to edge down in a narrow range, and quality differences may widen the price gap between high-end and low-end lots. (Zhuochuang Information)