215,764 tonnes of state-stored soybean sold on the first national soybean auction in 2019 06-25-2019

The first state soybean auction was held on 17th June, 2019 by the National Grain Trading Center. According to the announcement regarding auction results released by the National Grain Trading Center, the projected auction volume of state-stored soybeans in 2013 was 300,008 tonnes. The actual turnover was 215,764 tonnes, with a turnover ratio of 71.91%. The average transaction value was USD452.13 per tonne.

China decreases amount of imported soybean

In May, China imported 7.362 million tonnes of soybeans, which was less than the 8 million tonnes predicted by the market. China has imported 31.75 million tonnes of soybeans in total from January to May, which is a decrease of 12.2% compared to the same period last year.  The Supply and Demand Estimates Report of the USDA in June revealed that China is estimated to import 87 million tonnes of soybeans from 2019 to 2020, which is the same as the predictive value from May. However, the predictive value of imported soybeans from 2018 to 2019 in China has been cut down to 85 million tonnes, a reduction of one million tonnes compared to May and 3 million tonnes compared to April.

According to the Monthly Supply and Demand Estimates Report of China’s Ministry of Agriculture, the production of Chinese soybeans will have reached 17.27 million tonnes from 2019 to 2020, up from 16 million tonnes last year with a growth of 7.94%, which has set the highest level since 2004. This is because China is improving domestic production of soybeans, with 9.07 million hectares of estimated planting area, up from 8.4 million hectares in 2018.

Due to the effect of the African Swine fever virus, the demand for soybean oil by-products is limited. China’s Ministry of Agriculture expects that 86.6 million tonnes of soybeans will be used for oil extraction, which will remain stable compared to last year. From 2019 to 2020, China will import about 84.9 million tonnes of soybeans which will also remain stable compared to 2018. It was estimated that 103.56 million tonnes of soybeans were consumed in the year of 2018. China’s Ministry of Agriculture also claims that the supply of soybeans in the international market is estimated to be sufficient in the first half of 2019. Even though the soybean production from Brazil is expected to drop, the supply from the USA and Argentina is sufficient. This year Brazil’s soybean production is estimated to decrease to 115 million tonnes, a reduction of over 8 million tonnes from last year.

China plans to expand soybean planting area in the Northeast and East of Mongolia

China and America continue to negotiate in trade discussions and have made little progress toward compromise. Both sides need to continue to negotiate. Aggrandized claims about America imposing tariffs on Chinese products within the market, especially claims within the market for Chinese plant oil by-products, will continue. The American government issued the details of Agricultural Subsidy, saying that a total of 16 billion dollars will be funded to farmers so as to make up for their losses because of trade disputes between China and the United States and farmers will be subsidized depending on their total planting area.

According to the report from China’s Ministry of Agriculture and Rural Affairs, with the promotion of Soybean Revitalization Program, the planting area for soybeans will expand to 9,066 hectares, an increase of 7.93% from last year, and the projected soybean production is 17.27 million tonnes, a growth of 7.94% from last year. The data from China’s Statistical Bureau shows that the soybean intentional planting area in China this year will increase 16.4%, among which the intention of expanding soybean planting area goes more to the three northeastern provinces, namely Jilin, Heilongjiang, and Liaoling, and the east of Mongolia, with an increase of 37.0%, 28.4%, 14.2% and 14.1% respectively.


The soybean sprouts grow better in the Northeast producing area. This is because the sunny and rainy weather in the Northeast makes it suitable for planting soybeans. With the subsidy program for planting soybeans issued by the Chinese government, farmers’ passions for planting soybeans are enhanced. The soybean planting area in other places also increase with different levels. According to China’s Ministry of Agriculture and Rural Affairs, Chinese soybeans own their characteristics and strengths and as a result, the market for Chinese soybeans will be developed moderately depending on consumers’ needs. However, the soybean supply in China is still import oriented, and America is still one of its important partners in the international soybean market.

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