Chinese poultry industry boosting soybean prices
The recovering poultry industry in China is resulting in a bounce back in soybean crushing prices, the head of global agribusiness Bunge has said.
There has been an increase in demand for processed soy products from Bunge's own plants in the country, improving Chinese crushing margins. Demand and margins from processing soybeans into soymeal, a high protein ingredient in livestock feed and soyoil, have recovered, with notable demand from the Chinese poultry industry.
The Chinese poultry industry has been hit by the outbreak of H7N9 avian influenza. There have been over 200 cases and 20 have died. The disease has reduced demand and left producers facing a loss. In January the poultry groups formed an alliance to tackle food safety concerns and improve confidence in domestic chicken.
The fall in Chinese crush margins has been a massive factor for soybean investors worldwide, sparking talk of cancelled orders, or of purchases from Brazil being sold on to the US, which requires record imports to tackle a shortfall in supplies.
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