China’s soybean oil hit near a 10-year high, crush margins swing back to profit

China’s soybean oil prices hit a near 10-year peak this week on tight supply and robust demand, lifting key soybean crushing margins to six-month highs despite sustained weak demand for soymeal from China’s battered hog sector. The most actively traded soybean oil futures on Dalian Commodity Exchange has climbed 30% since mid-June to hit 10,278 yuan ($1,606.09) per tonne on Thursday, highest since October, 2012, before edging down on Friday. Soyoil’s rally has helped soybean crush margins in China’s top soy processing hub Shandong rise to their strongest since March, and fully recover from their plunge to record lows in June due to weakening soymeal demand from loss-making hog producers. “Soybean crushing margins are recovering mainly thanks to the rising soybean oil prices,” said Teng Hao, agriculture analyst with Chinese commodity consultancy Mysteel. “While pig prices fluctuate around low levels, demand for soymeal is not very good. Crushers would try to ensure profits from ...