Today is 06/02/2020

Soybean Crushing Margin Estimates in China- 26/7/2019

Theoretical Crushing Margins for Imported U.S. Soybean (RMB/tonne, July shipment)
Region Income Expenditure Margin Soybean Break-even Price
Soybean Oil Soybean Meal Total Soybean Cost Crushing Cost
Dalian, Liaoning 5,320  2,860  3,270  3,885  150 -765 3,828 
Qinhuangdao, Hebei 5,330  2,770  3,201  3,885  150 -834 3,826 
Costal Shandong 5,340  2,780  3,211  3,885  150 -824 3,823 
Jiangsu 5,420  2,760  3,210  3,885  150 -825 3,804 
Guangdong 5,400  2,720  3,175  3,885  150 -860 3,809 
 
Theoretical Crushing Margins for Imported U.S. PNW Soybean (RMB/tonne,Sep. shipment)
Region Income Expenditure Margin Soybean Break-even Price
Soybean Oil Soybean Meal Total Soybean Cost Crushing Cost
Dalian, Liaoning 5,320  2,860  3,270  3,846  150 -726 3,779 
Qinhuangdao, Hebei 5,330  2,770  3,201  3,846  150 -795 3,776 
Costal Shandong 5,340  2,780  3,211  3,846  150 -785 3,774 
Jiangsu 5,420  2,760  3,210  3,846  150 -786 3,755 
Guangdong 5,400  2,720  3,175  3,846  150 -821 3,759 
 
Theoretical Crushing Margins for Imported Brazilian Soybean (RMB/tonne, Aug. shipment)
Region Income Expenditure Margin Soybean Break-even Price
Soybean Oil Soybean Meal Total Soybean Cost Crushing Cost
Dalian, Liaoning 5,320  2,860  3,323  3,122  150  51  2,795 
Qinhuangdao, Hebei 5,330  2,770  3,254  3,122  150  -18  2,792 
Costal Shandong 5,340  2,780  3,264  3,122  150  -8  2,790 
Jiangsu 5,420  2,760  3,264  3,122  150  -8  2,770 
Guangdong 5,400  2,720  3,229  3,122  150  -43  2,775 
 
Theoretical Crushing Margins for Imported Argentine Soybean (RMB/tonne, July shipment)
Region Income Expenditure Margin Soybean Break-even Price
Soybean Oil Soybean Meal Total Soybean Cost Crushing Cost
Dalian, Liaoning 5,320  2,860  3,217  3,037  150  30  2,822 
Qinhuangdao, Hebei 5,330  2,770  3,148  3,037  150  -39  2,820 
Costal Shandong 5,340  2,780  3,157  3,037  150  -30  2,817 
Jiangsu 5,420  2,760  3,156  3,037  150  -31  2,799 
Guangdong 5,400  2,720  3,121  3,037  150  -66  2,804 
 
Crushing Margins for Port Distributed Soybean (RMB/tonne)
Region Income Expenditure Margin Soybean Break-even Price
Soybean Oil Soybean Meal Total Soybean Cost Crushing Cost
Dalian, Liaoning 5,320  2,860  3,244  3,580  150  -486  3,476 
Qinhuangdao, Hebei 5,330  2,770  3,174  3,580  150  -556  3,473 
Costal Shandong 5,340  2,780  3,184  3,580  150  -546  3,471 
Jiangsu 5,420  2,760  3,183  3,580  150  -547  3,452 
Guangdong 5,400  2,720  3,148  3,580  150  -582  3,457 
 
Crushing Margins for Domestic Soybean (RMB/tonne)
Region Income Expenditure Margin Soybean Break-even Price
Soybean Oil Soybean Meal Total Soybean Cost Crushing Cost
Heilongjiang 5,470  3,010  3,283  3,400  160  -277  3,356 
Dalian, Liaoning 5,320  2,860  3,139  3,520  160  -541  3,536 
Qinhuangdao, Hebei 5,330  2,770  3,069  3,540  160  -631  3,559 
Boxing, Shandong 5,340  2,800  3,094  3,560  160  -626  3,582 

Remarks:
1. Domestic soybean cost: soybean purchasing price + freight to the factory (Heilongjiang)
2. Oil extraction rate at 16%, and meal at 80%.
3. Estimated margins and actual profit in mills may have some differences as mills usually use their inventories or have already locked the cost previously, which may be different from intraday soybean cost on the basis of the CBOT price.
4. Soybean Break-even Price is calculated with intraday soybean cost and soybean oil price, and when the crush margins is ZERO, then it is soybean break-even price.