China’s soy, rapeseed meal futures drop after government pledges hog capacity control

China’s soybean meal futures fell on Thursday, snapping a five-day rally after authorities pledged to rein in hog production and reduce soymeal use in animal feed to stabilise hog prices. The most-active soybean meal contract on the Dalian Commodity Exchange (DSMcv1) fell 2.26% to 3,026 yuan per metric ton as of 6:55 GMT, marking its steepest daily drop since Nov last year. At a Wednesday meeting with major hog producers, the Ministry of Agriculture and Rural Affairs (MARA) said the country would reduce the number of breeding sows, control the slaughter weight of hogs and curb new production capacity. The move comes as authorities ramp up efforts to address overcapacity across multiple industries – an ongoing challenge that has fuelled domestic deflation and triggered trade barriers abroad. “The drop is driven in part by yesterday’s meeting focused on controlling hog production capacity, which is expected to limit future soymeal consumption,” said Wan Chengzhi, an analyst at ...