Volga Baikal AGRO NEWS Update on the Relationships in Global Food Markets !!!
China refuses the products of US farmers in favor of Russia
China refuses to buy soybean meal from the US, which is necessary for the production of animal feed. Preference is given to the Russian wheat because of its quality and favorable prices, PolitRussia reports with reference to Baijiahao.
The rise in the cost of soybeans provoked an increase in the price of soybean meal, and the PRC does not want to buy it in the current conditions.
“In the US spot market, soybeans are unlikely to decline in the near future,” – the article says.
A ton of soybean meal from the US now costs 4,104 yuan on average. China began to buy it at 30,100 tons per day – 9,700 tons less than before.
“Due to the sharp rise in the price of soybean meal, Chinese feed companies will adjust their formulas and look for alternatives. The best solution is to increase the amount of wheat in the feed,” – said Baijiahao.
Beijing intends to establish cooperation with the Russian Federation to increase the volume of wheat purchases. This will lead to the abandonment of American products, that is, farmers in the United States will be left without income in the Chinese market.
For the information: The Ministry of Agriculture of the Russian Federation since January 26 has made adjustments to the size of export duties on wheat, barley and corn.
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