Soybean demand may fall due to the crisis in Chinese pig farming

Grain producers and exporters are closely monitoring the problems in China’s hog farming industry. Pig farmers in China are suffering significant losses, which bodes ill for global demand. The crisis has already impacted various estimates of the country’s need for supplies from abroad. The Chinese government forecasts soybean imports of 95.8 million tons, while the US Department of Agriculture estimates 112 million tons. According to analyst and former USDA economist Fred Gale, producers are incurring losses of approximately $25 per head when fattening hogs. By comparison, a year ago, when pork prices were high and feed prices were low, profits were $45 per head. These losses are due to low prices due to ample supply and weak demand. Currently, Chinese hog farming companies are playing a survival game; those that can survive the downturn will remain in business, Gale said. Over the past year, Chinese companies have canceled dozens of major pig farming projects, signaling a retreat ...