Chinese soybean meal prices hit 2026 lows amid growing supply pressure

CHINA – Soybean meal prices in China have fallen to their lowest levels of 2026 as abundant soybean supplies, weaker demand from feed manufacturers and increased availability of alternative feed ingredients continue to weigh on the market.

Spot soybean meal prices declined further during the latest trading sessions, with prices in some regions falling to 2,760 yuan (US$384) per tonne, below the previous low of 2,780 yuan per tonne recorded earlier this year.

The average spot soybean meal price reached 2,835 yuan (US$394) per tonne, down 20 yuan from the previous trading day. 

In Jiangsu Province, prices ranged between 2,760 and 2,820 yuan per tonne, while quotations in Shandong Province fell to between 2,820 and 2,880 yuan per tonne.

The decline has also been reflected in the futures market. 

The most actively traded September soybean meal contract on the Dalian Commodity Exchange closed 37 yuan lower on June 5, settling at 2,918 yuan per tonne.

South American soybean imports weigh on feed ingredient market

Market analysts attribute the continued decline primarily to growing soybean supplies entering China from South America.

Large volumes of imported soybeans continue to arrive in the country while crushing plants maintain high operating rates, resulting in increased soybean meal production and rising inventories.

Additional pressure has come from developments in the United States soybean market, where favourable weather conditions and strong planting progress have improved expectations for a large harvest. 

Lower US soybean prices have reduced the cost of imported raw materials and contributed to weaker soybean meal prices in China.

At the same time, demand from feed manufacturers and livestock producers remains subdued. 

Many feed mills and animal producers have adopted a cautious purchasing strategy, limiting buying activity despite lower prices.

The availability of alternative feed ingredients has added further downward pressure. 

Market participants point to increasing supplies of sprouted wheat, as well as renewed auction sales of state reserve rice and imported corn, which provide livestock producers with additional feed options.

The decline in soybean meal prices could provide some relief for feed manufacturers, as soybean meal remains one of the most important protein ingredients used in livestock, poultry and aquaculture feed production.

However, market participants remain cautious, with many adopting a wait-and-see approach amid uncertainty surrounding future supply and demand developments.

Analysts note that soybean meal markets remain highly sensitive to weather conditions, trade policies and geopolitical developments. 

Adverse weather in major soybean-producing countries, changes in import policies or disruptions to global oilseed trade flows could quickly alter market sentiment and reverse current price trends.

For now, however, abundant soybean supplies and cautious feed demand continue to dominate the market outlook, keeping downward pressure on one of the world’s most important feed ingredients.

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