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China is considering limits on the protein content of pig and poultry feed to save costs amid its soybean tariff dispute with the US. Farmers and industry members oppose the move, warning it could harm livestock health.
The article notes Chinese soymeal prices have escalated.
Lower protein inclusion would cut Chinese demand for soybean meal and soybeans, which is bearish for those markets. Opposition from the industry makes the policy uncertain.
gfmt.blogspot.comFeb 5, 2019After 223 past bearish policy events, SBM moved a median -0.3% over 5 sessions (45% higher; middle half -2.2% to +1.2%), and -0.6% over 20.
After 369 past bearish policy events, SOY moved a median -0.2% over 5 sessions (46% higher; middle half -1.7% to +1.8%), and +0.8% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
