The Chinese soybean hulls market experienced considerable volatility during the second quarter of 2025, broadly mirroring the dynamics of the wider soybean complex. The quarter opened on a firm note, as commercial inventories of soybeans at domestic crushing facilities tightened sharply. Disruptions to soybean import flows, partly attributable to prevailing tariff conditions, constrained the availability of raw materials entering the crushing chain. With the supply of crushing co-products reduced, prices in the soybean hulls market climbed steadily, and feed cost pressures across the downstream livestock and aquaculture sectors intensified as a result.
As the quarter progressed, conditions shifted. Soybean arrivals at ports resumed at a more regular pace, easing the supply tightness that had characterised earlier weeks. Crushing activity recovered, leading to a gradual improvement in co-product availability. Concurrent weakness in terminal feed demand, combined with cautious procurement from downstream buyers, weighed on sentiment. Prices retreated from their quarterly highs as inventory levels at oil plants rebuilt and buying interest from feed manufacturers remained restrained. By the close of the quarter, the market had settled into a more subdued range, reflecting a broadly balanced.