Chinese soy oil consumption is expected to drop by 7% year-on-year in the first half of 2020 to 3 million mt, while the soybean meal consumption is projected to drop by 4% year on year to 13 million mt during the period, due to the coronavirus outbreak, according to banking and financial services company Rabobank.
The Hellenic Shipping News reports the epidemic, which has already claimed over 2,800 lives, has virtually put China’s business supply chain to a halt, market sources said. The commodity transportation across China has been severely hit due to contagion fear.
According to Rabobank, coronavirus, coupled with extended work absences, temporary transportation controls and logistics delays, and lower consumption, has disrupted the supply chain of the Chinese soybean crushing industry.
