Bottom Line: China’s “spot” soybean crushing margin rose 28 Yuan in the past week. The spot margin is now just below break-even at -1 Yuan/Mt. The “forward” margin rose 26 Yuan to -9 Yuan/MT. However, the forward margin is 203 Yuan ($0.84/Bu) below what it was a year ago.
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The estimated crush margin for imported soybeans “spot” delivery in China today was -1 Yuan/MT (see red line in chart below). That is up 28 Yuan from a week ago.
The crush margin for beans for “forward” delivery today was -9 Yuan/MT (see blue line in chart above). That is up 26 Yuan from a week ago. However, the forward margin is 203 Yuan below what it was a year ago.
Above is a chart that shows the soymeal price used to calculate the crush margin. Soymeal’s price today was down 1.0% from a week ago. Below is a chart that shows the soyoil price that was used to calculate the crush margin. Soyoil’s price today was down 2.1% from a week ago.
The chart below shows import margins for soyoil (see red line) and palm oil (see blue line). China is the world’s second largest importer of vegoil. Today’s soyoil import margin was -1,120 Yuan/MT. This is down 64 Yuan from a week ago. Six weeks ago was the lowest price in over 4 years. Today’s palm oil import margin was +84 Yuan/MT. That is up 100 Yuan from a week ago. Palmoil import margins are rarely positive.
