Soybean Photo:Xinhua

China has recorded strong demand for soybean but supply will remain stable, and the wholesale price will be 4,275 ($657.7) to 4,475 yuan per ton, estimated by a Chinese Agricultural Outlook Committee (CAOC) report released on Tuesday. 

CAOC predicted that US soybean capacity in new season will reach a record high, at around 123 million tons. With soybean capacity reduced in Argentina and increased in Brazil, global soybean price will remain elevated due to shrinking global supply. 

"China's domestic soybean supply in 2021 is likely to be more than sufficient," Jiao Shanwei, editor-in-chief of cngrain.com, a website specializing in grain news, told Global Times on Thursday. 

"According to the No. 1 Central Document of 2021 and Central Rural Work Conference held in December 2020, China's soybean planting area should be maintained at over 140 million mu (93,333 kilometers) in 2021," said Jiao.

Jiao noted that due to China's market demand for soybean is highly relying on import, the China-US trade contracts will ensure the soybean import channel. "At present, about 60 percent of imported soybean is from Brazil, and the amount of China's imported soybean from Brazil will also be secured due to good harvest there," said Jiao.

In addition, based on the promising growth of oilseed rape in South China, CAOC increased the estimated edible vegetable oil capacity for 110,000 tons in March. The low international inventory caused increasing edible oil price, which also brought up China's edible oil price.

China's demand and supply relationship for cotton and sugar remains positive according to the report. The international corn price is likely to remain high.