Why are southern japonica rice prices facing downward pressure?

Southern japonica rice prices face downward pressure Starting in March, the volume of indica rice from reserves at all levels entering the market in southern provinces gradually increased, but the price gap between new and old rice continued to remain at a relatively high level. Since April, the volume of policy rice and reserve rice at all levels being released from warehouses in the main southern japonica rice producing areas has increased significantly, and market supply has risen; however, as temperatures rise, market demand for rice tends to become sluggish. Recently, japonica rice prices in southern producing areas have stopped rising, and it is expected that southern japonica rice prices will face downward pressure in the short term.

Soybean meal market will remain relatively strong in the short term Since the beginning of April, on the one hand, domestic soybean meal inventories have not been loose. Due to delays in soybean arrivals at ports in April, many oil mills in Shandong suspended operations because of a shortage of soybeans, soybean meal supply has been relatively small, and shipments have basically proceeded according to plan. Some oil mills previously had queues for picking up goods. Spot soybean meal in North China is also relatively tight. With the May Day holiday approaching, downstream feed enterprises are also facing a small restocking need. On the other hand, hog prices have begun to recover, and improved farming profits may boost farmers' enthusiasm for restocking, and soybean meal futures have staged a rebound. Based on support from both domestic and international markets, soybean meal will remain relatively strong in the short term, but caution is still needed in the medium term.