Soybean oil costs in China hit a 10-year high this week with tight supply amidst robust demand rate.
The most effectively traded soybean oil has steadily climbed 30% since mid -June to hit 10,278 yuan ($1,606.09) per ton on Thursday before edging down on Friday.
Soybean oil rally which has been driven by both domestic and international market has assisted soybean crush margin in China’s top soy processing centre Shandong to rise to their strongest since March, and completely recuperate from their plunge to record lows in June .
Crushers in Shandong region, a key processing centre in northern China, presently make around 150 yuan on each tonne of soybean crushed, up from record losses of 650 yuan in June.
Smashers purchase soybeans to squash into soybean supper to take care of animals and soyoil for cooking, with the proportion of the two items at generally 80:20.