31 October 2018
With Chinese govt. approving the reduction in protein content in animal feed, soybean (3583 Yuan/ton) and soymeal (3,317 Yuan/ton) prices have came under huge pressure. Soybean futures prices on DCE has touched the fresh low on October 30th.
Brewing trade spat between world's largest two economies has compelled China to look for other alternatives to cater its ever-rising food and animal feed requirements from other markets. However, in the absence of its largest exporter (United State) and depleting soybean stock in other major exporting nations, China has resorted to reduce protein levels in animal feed.
China’s Feed Industry Association on Friday approved new standards for feed for pigs and chickens, lowering the protein levels in pig feed by 1.5 percentage points and those for chickens by one percentage point, the agriculture ministry said in a statement.
The standards are only guidelines and the ministry did not say when they would take effect, with traders saying that prices would continue to be the key focus for soymeal consumers.