1. Some relaxation of trade tensions between China and US looses soybean supply in China.

Soybean output is estimated to experience a steady growth with favorable weather in South America. Although policy uncertainty is expected to impact soybean importation from US and South America, increase in total import volume is limited.


2. Strong policy support helps the recovery of swine-raising activities but it still needs more time

The increase in quantity of live sows, releasing of state pork reserves and rising imports relieve the tight pork supply at the moment.
The fluctuation of poultry raising with limited room for improvement is able to ease the volatility of demand for seasonal soybean meals, where demand for soybean meals will be higher in 2H 2020.


3. Demand for soybean meal restricts soybean crushing

Although the soybean crushing profit improved, the uncertainty in recovery of soybean meal demand still restricts soybean crushing activity and manufacturers will control the soybean purchasing rhythm.


4. Tight oils & fats supply in China

China depends more heavily on imports. Oils & fats consumption becomes divided due to changing supply structure.


5. Oils & fats supply reduced and destocking in the first half 2020

Weak demand for soybean meal restrains soybean crushing. Poor profit of palm oil imports. Restricted policy on rapeseed and rapeseed oil imported from Canada.