China buys 100 million tons of soybeans causing global prices to increase

Published Feb 23, 2022

Tridge summary

Soybean prices are experiencing a surge due to high global demand, particularly from China which purchases 60% of the world's soybean supply. This has resulted in soybean prices fluctuating between $15 and $16 per bushel, and if they reach $18 per bushel, the Indonesian government will implement a policy mechanism to avoid burdening the community. The price increase has affected the cost of soybeans for tofu and tempeh makers, who have had to raise their prices from Rp. 6,000-7,000/Kg to over Rp. 11,000/Kg. The price fluctuation is largely dependent on the production results in the United States and other major soybean-producing countries like Brazil and Argentina.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Jakarta, CNBC Indonesia - Soybean prices continue to climb due to high global demand. One of them was triggered by China's wholesale action on imported soybeans from major supplying countries such as the US. "The soybean problem is an international problem. In 2021, we will import 2.5 million tons of soybeans, while domestic production is no more than 300 thousand tons. So we depend on international problems," said Trade Minister Muhamad Lutfi while with SOE Minister Erick Thohir and The Regent of Purworejo inaugurated the Purworejo Market, Tuesday (22/2). He said that the high soybean price was due to the high price of supercycles, such as urea fertilizer. Lutfi said that China buys 60% of the world's soybean supply. He said China bought more than 100 million tons of world soybean products for its domestic needs. "So if China goes up, the price also goes up. Then tensions between Russia and Ukraine, causing the price of wheat flour to rise, along with soybeans. But if you look at ...

Source: Cnbcindonesia