Today ( Oct. 17th), the market for meals in China is shown as follows:
Soybean meal: US soybean fell last night, so do meals on Dalian Commodity Exchange (DCE) today. And domestic soybean meal spots also step down and trade lower. The prices in coastal areas range from 3,550 to 3,600 yuan/tonne, down 10-30 yuan/tonne against last Friday. (Tianjin 3,570, Shandong 3,550-3,580, Jiangsu 3,560-3,610, Dongguan 3,600-3,610, Guangxi 3,610-3,620). Meals on DCE keep falling, for the ongoing African swine fever is crippling hog replenishment, in addition to a possible meeting between China and the US heads in late November. Besides, soybean meal spots go downward under pressure as the substitute amount of mixed meals is lifted by the widened price spread. However, soybean meal stock declines slightly after smooth trade last week. By the way, due to the one-week maintenance in local power plants, oil mills in Rizhao and East China have set bounds to delivery. In addition, forward soybean supply will tighten as import soybean at port may be lower by 5-7 Mln tonnes from November to January against the same period. Given this, oil mills are trying to support the price so that there is little room for soybean meal to step down. In general, the overall market may edge up in fluctuation due to the ongoing trade war, and buyers with insufficient stock can replenish on the dips.
Imported rapeseed meal: Imported rapeseed meal market edges down today, among which prices in coastal areas range from 2,650 to 2,710 yuan/tonne by 30-60 yuan/tonne (Fanchenggang Great Ocean 2,700, stable; Dongguan Fuzhiyuan 2,720, down 10; Zhangzhou Chinatex, Fujian 2,730, down 10). Currently, rapeseed meal market is dragged down to adjust upon callbacks. For one thing, the ongoing ASF is crippling the hog replenishment; for the other, meals on DCE keep falling due to a possible meeting between the US and China heads in late November, and soybean meal spots are also forced to step down. However, demand for rapeseed meal is expanded by its large spread with soybean meal so that it is now in short supply. Besides, there is slim hope for the trade war to end briefly. Therefore, the overall market will go upward in fluctuation amid the trade war. And it would be better to stand on the sidelines and make proper replenishment upon low and stable prices.
Imported fishmeal: Today, imported fishmeal is quoted steadily and can be traded with price negotiations, with flat shipment at port. Northern ports: price is 10,600-10,700 yuan/tonne for Peruvian ordinary SD with 65% protein content, 11,500-11,700 yuan/tonne for Japanese SD with 67% protein content, and 11,700-11,900 yuan/tonne for super steam fishmeal with 68% protein content. Southern ports: price is 10,700 yuan/tonne for Peruvian ordinary SD with 65% protein content, 11,600 yuan/tonne for Japanese SD with 67% protein content, and 11,800 yuan/tonne for super steam fishmeal with 68% protein content. Stocks at port: Huangpu 53,000 tonnes, Fuzhou 39,000 tonnes, Shanghai 52,000 tonnes, Tianjin 1,000 tonnes, Dalian 8,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. Spot quotations (FOB) in foreign market keep stable: Peruvian ordinary SD fishmeal with 65% protein content is quoted at 1,330 USD/tonne, and 1,600 USD/tonne for super SD fishmeal with 68% protein content. Chilean ordinary fishmeal with 65% protein content is quoted at 1,510 USD/tonne, prime with 68% protein content is 1,620 USD/tonne. For the bearish information from Peru and the declining demand for fishmeal, holders are burdened with pressure in selling, so fishmeal market may go weak steadily in the near term.
Cottonseed meal: US soybean ended lower yesterday, and today meals on DCE fall back, followed by spots of soybean meal to lose 10-30 yuan/tonne. In addition, crippled by the dismal demand from poultry and aquaculture, cottonseed meal drops by 50 yuan/tonne partially. Cottonseed meal may adjust slightly with the increasing number of new cottonseed meal on the market. But there is little room for callbacks as the trade friction gets worsening, and cottonseed meal is in short supply amid its increasing demand due to the widen spread with soybean meal, so the overall market will edge up from fluctuation before the trade conflict is settled.
(USD $1=CNY 6.92)
