Beginning in July, domestic soybeans ended the decline in June. Boosted by the futures market, domestic soybeans stopped falling and rebounded and showed an upward trend. After the market rose, the market continued to stabilize. The market lacked guidance and market volatility was small. Towards the end of the month, domestic soybeans ushered in a callback due to the impact of the futures market. As of July 28, the average domestic soybean market price was 5766 yuan/ton, an increase of 1.17%.
Domestic soybeans performed poorly in April, with a decline of 2.72%. On May 11, several warehouses directly affiliated to China Grain Reserves issued an announcement that domestic soybeans returned to rising prices for three consecutive weeks. The soybean market began to weaken at the end of the month. Since June, the demand for terminal soybean products was not good, and the State Reserve’s purchase price was reduced. Soybeans continued to fall mainly. Entering July, the futures market pulled up, and the price of domestic soybeans returned to the upward trend. After two gains for two weeks, the market stabilized this week. Near the end of the month, the futures market fell, and the price of domestic soybeans fell slightly.
Supply is tight in July, domestic soybeans are overall strong
In early July, domestic soybeans have gradually risen, and the purchase price of the State Reserve has also continued to rise. The USDA report data is bullish, the US soybeans in the foreign market continue to rise, and the domestic market continues to rise. Supported by multiple bullish factors, domestic soybean prices ushered in a rise again, and mainstream quotations returned to 2.8 yuan/kg. Due to the shortage of surplus grain and tight supply in the main producing areas, according to previous years, the temporary storage auction may start. Traders are waiting for the auction of the State Reserve, cautiously entering the market, and domestic soybeans have entered a period of stability.
At the end of the month, the US soybeans in the foreign market ushered in a callback, and the domestic soybean terminal demand was not good. Due to the suppression of the futures market, the price ushered in a slight callback. Due to the shortage of domestic soybean surplus grain in Heilongjiang’s main production area and the tight supply, soybean prices remain strong, with gross grains being 2.7-2.8 yuan/kg and commodity soybeans 2.8-2.9 yuan/kg, and market transactions are average.
Whether the domestic soybean market can usher in a sharp rise in August depends on the state reserve auction transactions. In the short term, domestic soybeans will remain the mainstay.