Northeast oil refinery will undergo large-scale shutdowns

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According to statistics, some factories in Northeast China have already shut down due to a shortage of soybeans. After April, the scope of the shutdowns gradually expands. Only a few crushers have enough soybeans to keep operating, and even the fastest ones can only resume soybean crushing by mid-April. A broad-scale restart of crushing operations needs to wait until late April through the end of the month.

As Northeast China is an area that previously showed potential for growth in hog production, many breeding enterprises have moved their facilities to Northeast China or expanded their facilities there. Although some of these moves have not been implemented, there are still many breeding enterprises in the region whose facilities are used for raising hogs or beef cattle. Therefore, over the coming period, feed companies in Northeast China and some breeding enterprises that continue to consume feed will need to prepare the corresponding soybean meal inventory in advance. This is to deal with the risk that, because Northeast China’s oilseed crushers suspend operations on a large scale, it will be more difficult to procure soybean meal and costs will be relatively high. (China Feed Industry Information Network)

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