# ADM exec: ASF in China positively affecting margins | Feed Strategy

> ADM CFO Ray Young said African swine fever in China has lifted soybean processing margins for animal feed so far, with the full meal-market impact still expected later. ADM expects $500-600 million in incremental pretax earnings improvement in 2020. Rabobank projects China's hog feed use will fall 40% in 2019 and overall animal feed consumption will drop 17%.

- Date: 2019-11-15 · published 2019-11-15T12:00:00.000Z
- Category: disease · region China · magnitude medium
- Page: https://feedsoft.ai/events/56057-adm-exec-asf-in-china-positively-affecting-margins-feed-strategy
- Commodities: [Soybean Meal](https://feedsoft.ai/c/SBM.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Strong demand for soybean meal from countries expanding livestock to replace lost Chinese pork supports meal prices and crush margins, while China's shrinking feed use is a bearish offset.

## Read by commodity

- SBM: bullish ▲
- SOY: bullish ▲
- CORN: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBM | 2021-07-30 | [ASF’s effects on feed demand in China, Germany \| Feed Strategy](https://feedsoft.ai/events/46075-asf-s-effects-on-feed-demand-in-china-germany-feed-strategy.md) | +0.1% | -0.4% |
| SBM | 2021-01-29 | [China confirms ASF outbreak, new virus strains \| Feed Strategy](https://feedsoft.ai/events/49029-china-confirms-asf-outbreak-new-virus-strains-feed-strategy.md) | +1.8% | -0.6% |
| SBM | 2020-01-21 | [China rebuilds swine herd; poultry, aqua demand grows \| Feed Strategy](https://feedsoft.ai/events/55069-china-rebuilds-swine-herd-poultry-aqua-demand-grows-feed-strategy.md) | -0.9% | -2.8% |
| SBM | 2020-10-06 | [ASF gap in China drives global protein inflation
						 \| The Pig Site](https://feedsoft.ai/events/50592-asf-gap-in-china-drives-global-protein-inflation-the-pig-site.md) | +3.8% | +9.2% |
| SBM | 2019-03-16 | [eFeedLink - Is China's broiler sector finally rebounding?](https://feedsoft.ai/events/60247-efeedlink-is-china-s-broiler-sector-finally-rebounding.md) | +1.4% | -0.9% |
| SOY | 2019-11-05 | [China's Cooking Oil Market Boils Amid Pork Shortage, Low Soy Stocks \| ESM Magazine](https://feedsoft.ai/events/56155-china-s-cooking-oil-market-boils-amid-pork-shortage-low-soy-stocks-esm-magazine.md) | -2.2% | -5.9% |
| SOY | 2019-08-02 | [China's soybean demand remains strong amid massive hog losses - UPI.com](https://feedsoft.ai/events/57568-china-s-soybean-demand-remains-strong-amid-massive-hog-losses-upi-com.md) | +2.1% | +1.1% |
| SOY | 2019-11-29 | [China soy, palm oil markets surge on swine fever spillover – China Economic Review](https://feedsoft.ai/events/56158-china-soy-palm-oil-markets-surge-on-swine-fever-spillover-china-economic-review.md) | +0.3% | +5.4% |

## Sources

- feedstrategy.com: https://www.feedstrategy.com/animal-health-veterinary/african-swine-fever/article/15440923/adm-exec-asf-in-china-positively-affecting-margins

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.