Chinese soybean processors have canceled 10 Brazilian soybean cargoes since last week, according to sources cited by Bloomberg. Chinese processors are reportedly losing $20 per metric ton crushing imported soybeans, while Brazil’s soybean prices increased.
“Margins are bad, hog prices are awful and people don’t want to be long a bunch of meal,” said Darin Friedrichs, co-founder and market research director of Sitonia Consulting, a China-based agricultural information service provider.
Chinese live hog prices have been halved over the past year. The Chinese government is planning on purchasing pork to increase state stocks and boost prices for domestic producers.
