Business

Surging China Demand Drives Up Soy Bean Prices
By wchung | 07 Jun, 2026

Soybean prices have surged after China decided to import six to eight shiploads to replenish its national soybean stockpile. In an effort at preventing a price spike, China had made price inquiries anonymously but was unable to keep its intentions from affecting the market.

The State Administration of Grain and the National Development and Reform Commission had recently made two decisions to import soybeans. Its moves are closely watched because it enters the market only on rare occasions and for very large purchases. The China Grain Reserves Corp. which is responsible for making the buys, now has no choice but to pay the higher market price.

To avoid triggering big price hikes, some have suggested using mid-level state enterprises like the China National Cereals, Oils and Foodstuffs Corp. to obscure China’s grain moves. That suggestion was ruled out due to confidentiality regulations, said an official at the State Administration of Grain.

The domestic soybean industry has suffered a drop in output this year, forcing China to import 80% of its soybean demand compared to 70% three years ago. Despite its status as a major grain importer, China has little control over international market prices when making purchases for its national strategic stockpile. One reason is the fact that China does not have a multinational grain enterprise.

Eighty percent of China’s soybean imports are dominated by four multinationals — ADM, Bunge, Cargill Louis, and Dreyfus.