Speculation may be part of domestic price increases
Soybean imports have decreased since early June when prices began to rise. The domestic price of soymeal has risen 60 percent in 2012; soyoil and soybeans have gained 13 percent and 15 percent, respectively.
Some analysts are attributing a large part of the soymeal price surge to speculative buying on the futures market. “Despite tight supply, soymeal prices have gone far beyond supply-demand fundamentals,” said one analyst. China’s top economic planner, the National Development and Reform Commission, met with representatives of major crushers to warn them against excessive speculation.