MySheen

Soya bean price rises and our country huge quantity demand has the relation?

Published: 2024-09-19 Author: mysheen
Last Updated: 2024/09/19, International soybean prices are indeed closely related to China's soybean demand, but if we attribute the rise or fall of national soybean prices entirely to China, we can only say that we do not carry this pot. In addition, regarding South American soybean cultivation mainly...

It is true that international soybean prices are closely related to China's soybean demand, but if we attribute the rise or fall of national soybean prices to China, we can only say that we do not carry this pot. In addition, the claim that soybeans are grown mainly by the Chinese in South America does not seem to be entirely true. Let's talk about the data.

Soybean price fluctuation

The market volatility of the price is affected in many ways, and if it is simply attributed to Chinese demand, it is true that China has a huge demand for the international soybean market. In 2017, for example, China purchased a total of 95.53 million tons of soybeans from the international market. And the total global soybean production is no more than 300 million tons. In other words, we in China alone have purchased more than 1/3 of the world's soybeans from the market.

However, the rise in soybean prices can not be completely attributed to the procurement of our country, our country can only be said to be one of the factors. As far as the current situation is concerned, the trade problems between China and the United States have stimulated the rise of soybean prices in China, Europe, South America and other places.

And before that, global soybean prices rose due to a massive reduction in soybean production in Argentina due to drought. There are a lot of such cases. We in China are only participants in the trade market, not price spoilers. And the key point is that if the market really did not have such a large demand, the world soybean acreage would not be so large.

In that case, supply and demand are still in balance and prices are still fluctuating at a reasonable level, so how can the rise in soybean prices be attributed to China because of China's high demand for soybeans?

Soybean situation in South America

In 2017, the United States produced 119 million tons of soybeans, accounting for 35 percent of the world's total output. Brazil produced 108 million tons of soybeans and Argentina produced 57 million tons. Last year, China imported 3286 and 50.936 billion tons of soybeans respectively from the above three countries. In this way, among the above three countries, only the total amount of soybeans imported from Brazil is too high to exceed 50%, while the proportion of soybeans in the other two countries is still very small.

If it is reasonable to say that Brazilian soybeans are serving China, then the United States and Argentina are somewhat unreasonable. For example, in the case of American soybeans, China has imported 1/3 of its own soybeans, while the country still has half of its own Xiaofen. With an extra 1/6 exported to other countries, let alone grow soybeans for China. With such an analysis, how can we say that South American soybeans are grown for China?

The demand for soybeans in China is indeed huge. Since the opening of China's soybean imports in 1996, the import of soybeans has increased year by year, but we should also recognize a reality that the demand for soybeans in China is not only increasing. Global demand is increasing, and global acreage is also increasing. This is closely related to the improvement of the economic level of the people of the world. And in today's era of economic globalization, no country shakes and disturbs the entire global order on its own.

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