Today (Nov. 7th), the market for meals in China is shown as follows:
Soybean meal: US soybean closed lower last night, but today meals on the Dalian Commodity Exchange fluctuate to edge up. Domestic soybean meal spots stay stable to fluctuate, attracting some trading at lows. The price in coastal areas is 3,300-3,400, fluctuating by 10-20 yuan/tonne steadily. (Tianjin 3,330-3,350 yuan/tonne, Shandong 3,300-3,350, Jiangsu 3,300-3,370, Dongguan 3,370-3,400, and Guangxi 3,380-3,400). Operation rate has dropped sharply in East China, where the environmental protection is strictly checked during the ongoing China International Import Expo in Shanghai. Besides, oil mills are still supporting the price in view of a small import volume of soybean from November to February. However, the demand for mixed meals will increase as the price spread between soybean meal and rapeseed meal has touched a four-year high. In addition, hog farmers remain prudent in replenish amid frequent outbreaks of African swine fever. In this context, soybean meal price is restricted as its stock will continue to rise for reducing end demand. And short-term soybean meal price is now posting narrow fluctuations. Talking of the US midterm election result, as expected, Democrats are poised to win control of?the US House and Republicans will retain control of?the Senate. If rises continue to enlarge in afternoon session, buyers can replenish properly on the dips, but shall be careful when forcing up the price.
Imported rapeseed meal: Imported rapeseed meal prices are mixed today, of which it is 2,450-2,590 yuan/tonne in coastal areas, fluctuating by 10-30 yuan/tonne. (Guangxi 2,450, down 10 yuan/tonne; Guangdong 2,500, stable; Zhangzhou Chintex, Fujian 2,590, stable). Currently, rapeseed meal market is propped up by its tight inventory. In addition, its demand is expected to increase as its price spread with soybean meal has touched a four-year high. But its price hikes are restricted by handsome crush margins and its end demand amid frequent outbreaks of African swine fever, for which hog farmers remain cautious in replenishment. Talking of the US midterm election results, Democrats have won the control of?the US House as expected, which may register disapproval of Trump's tariff policy. If so, the market may get some benefits. Buyers can replenish properly on the dips, rather than force up the price.
Imported fishmeal: Today, imported fishmeal is quoted steadily and can be traded with price negotiations, with an unremarkable delivery state at port. Northern ports: price is stable at 10,500-10,600 yuan/tonne for Peruvian ordinary SD with 65% protein content, down 200 yuan/tonne at 11,400 yuan/tonne for Japanese SD with 67% protein content, and down 100 yuan/tonne at 11,500-11,600 yuan/tonne for super steam fishmeal with 68% protein content. Southern ports: price is unchanged at 10,600 yuan/tonne for Peruvian ordinary SD with 65% protein content, down 100 yuan/tonne at 11,300 yuan/tonne for Japanese SD with 67% protein content, and down 100 yuan/tonne at 11,500 yuan/tonne for super steam fishmeal with 68% protein content. Stocks at port: Huangpu 60,000 tonnes, Fuzhou 37,000 tonnes, Shanghai 58,000 tonnes, Tianjin 1,000 tonnes, Dalian 10,000 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, and prime with 68% protein content is 1,620 USD/tonne. Fishmeal market turns bearish under slack demand, while market participants are still awaiting information from Peru, so the fishmeal market will probably run stable to drop in the near term.
Cottonseed meal: Today, soybean meal spots fluctuate by 10-20 yuan/tonne, and cottonseed price with delivery freight also goes up. The price spread between soybean meal and cottonseed meal has increased the demand for the latter, which has seen a partial rise of 50 yuan/tonne today, for oil mills are reluctant to sell their small stocks. But soybean meal inventory has picked up substantially, while meal demand is hurt by the contagious African swine fever, so cottonseed meal market is restricted by its low turnover. Buyers are suggested to replenish for a safety stock on the dips, and remain cautious when driving up the price.
(USD $1=CNY 6.93)
