The outlook for China's soyameal and rice markets turned more bullish this week, in expectation of better demand for pig feed and tight rice supplies in eastern China, a survey by an official grain think-tank showed on Friday.
The soyameal outlook improved for the sixth week, as traders betting on a recovery in feed demand boosted futures prices in Dalian. Pig raising is recovering fast after being hit hard by disease and poultry stocks are at a relatively high level. However, demand for feed for adult pigs did not recover in August and in some regions even fell.
Since a large number of pigs are expected to be slaughtered ahead of National Day and Mid-Autumn Festival, the demand for adult pig feed is seen weak through October. The outlook for soyabean continues positive, on strong crushing margins, higher international futures prices and strong domestic soyameal prices.
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