Soymeal prices in China, the world's top consumer of the animal feed ingredient, are rising after at least 20 soybean crushing plants shuttered to comply with curbs on industrial power consumption, industry participants said on Friday.
According to a report at Successful Farming, five crushing plants in the northern city of Tianjin closed this week, said Tianfeng Futures in a note on Friday, including a facility owned by Louis Dreyfus Company (LDC).
The LDC facility in Tianjin has a daily crushing capacity of 4,000 tonnes and has been closed since Sept. 22, the company told Reuters.
Bunge Ltd., which also has a crushing facility in Tianjin, "responded to the government mandate but total production is not materially different from what we expected," the company said in an emailed statement.
The Successful Farming report notes China's provincial authorities have stepped up enforcement of emissions curbs in recent weeks, leading to strict limits on power loads that have hampered production across various industrial consumers.
