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China’s Shortage of Pig Feed Set to Ease on Looming Soy Imports

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China is reeling from a nearby shortage of soybean meal, an important ingredient for hog feed, which is shown by a hefty backwardation in the futures market on the Dalian Commodity Exchange. 

Futures for November delivery settled at 4,884 yuan ($676) a ton Thursday, about 800 yuan higher than prices for January. Chinese processors slowed buying of foreign soybeans during the summer when crush margins turned negative, curbing arrivals. Shallow water in the Mississippi River because of drought has also limited prospects for US exports and worsened the crunch.