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China's Feed Industry Association published draft guidelines proposing caps on crude protein and phosphorus in pig, layer and broiler feeds. The move is being considered partly because high Chinese tariffs on US soybeans have pushed Chinese soymeal prices to record highs.
China is entering its typical peak buying season for US soybeans.
Lower protein inclusion would reduce soymeal demand in China, the largest importer, which is bearish for soymeal and soybeans. High tariffs are also raising feed costs for Chinese producers.
thepoultrysite.comGlobal Ag MediaOct 11, 2018After 223 past bearish policy events, Soybean Meal 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, Soybeans moved a median -0.2% over 5 sessions (46% higher; middle half -1.7% to +1.8%), and +0.8% over 20.
After 26 past neutral policy events, Lean Hogs moved a median -0.9% over 5 sessions (38% higher; middle half -2.6% to +1.7%), and +0.2% over 20.
Not enough comparable past events yet for a historical read.
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.
