Today (Nov. 8th), the market for meals in China is shown as follows:
Soybean meal: US soybean has fluctuated to fall overnight, so do meals on the Dalian Commodity Exchange (DCE) today. Soybean meal spots stop climbing to fluctuate slightly and trade lower. The price in coastal areas is 3,290-3,380 yuan/tonne, steadily fluctuating by 10-20 yuan/tonne against yesterday. (Tianjin 3,330-3,350, Shandong 3,290-3,380 yuan/tonne, Jiangsu 3,340-3,360, Dongguan 3,370-3,400, Guangxi 3,380-3,400). Soybean meal stockpiles extend a two-week rally amid the slack demand from aquaculture and negative replenishment under the contagious African swine fever (ASF). In addition, Indian rapeseed meal, Canadian canola meal and Ukrainian sunflower meal keep flooding into China’s market. Meanwhile, minister of Argentine Agriculture Department is visiting China this week, aiming at finalizing a soybean meal import deal with China. Currently, Brazil is still signing soybean contracts for December, but Chinese importers need to be cautious before the meeting between Chinese and US presidents later this month. Besides, soybean import volume will be small from November to February, and operation rate in East China’s oil mills has dropped sharply for the environmental check during the China International Import Expo in Shanghai. With the bull and the bear intertwined, short-term soybean meal market may present narrow fluctuations frequently. According to foreign media, Wang Yi, Foreign Minister of China, says that Chinese and US presidents have reached consensus on developing bilateral relationships, after which meals on the DCE take plunge in afternoon trade. Investors can keep an eye on USDA’s report tonight, which may slightly lower down soybean output forecast while raise its inventory. For recent sessions, buyers are suggested to replenish on the dips after steady callbacks and be careful in forcing up the price.
Imported rapeseed meal: Imported rapeseed meal prices step down today, of which it is 2,440-2,570 yuan/tonne in coastal areas, down by 10-30 yuan/tonne. (Guangxi 2,440, down 20 yuan/tonne; Guangdong 2,490, down 10; Zhangzhou Chintex, Fujian 2,570, down 20). Currently, Brazilian soybeans are planted at an unprecedented pace, which will probably ease supply tensions after the Chinese Spring Festival. Besides, aquaculture is entering slack season as the weather gets cool. And Indian rapeseed meal, Canadian canola meal and cheap Ukrainian sunflower meal are also flooding into Chinese market, which is bad to rapeseed meal market. And today after foreign media reporting that Foreign Minister of China says the meeting between Chinese and US presidents at G20 summit will be of?great significance to both sides, meal futures take plunge in afternoon trade due to a possibly easing trade state. In general, short-term rapeseed meal market may follow futures to fluctuate to adjust. Market participants forecast a somewhat bearish USDA report tonight, so buyers can just wait and see.
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 10,500-10,600 yuan/tonne for Peruvian ordinary SD with 65% protein content, 11,400 yuan/tonne for Japanese SD with 67% protein content, and 11,500-11,600 yuan/tonne for super steam fishmeal with 68% protein content. Southern ports: price is 10,600 yuan/tonne for Peruvian ordinary SD with 65% protein content, 11,300 yuan/tonne for Japanese SD with 67% protein content, and 11,500 yuan/tonne for super steam fishmeal with 68% protein content. Stocks at port: Huangpu 62,000 tonnes, Fuzhou 37,000 tonnes, Shanghai 58,000 tonnes, Tianjin 1,000 tonnes, Dalian 12,000 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 inventory is trending up as its demand turns thinner, while the wait-and-see sentiment is strong as Peruvian government still have not released its new fishing quotas, so the fishmeal market will probably run stable to drop in the near term.
Cottonseed meal: Cottonseed meal gains some 10 yuan/tonne today, as oil mills are reluctant to sell their inadequate supply when cottonseed price to factory is increasing and cottonseed meal demand is also brought higher slightly by its price spread with soybean meal. But meals on the DCE have plunged in afternoon session for an easing trade state, of which soybean meal spots have slipped by 10-20 yuan/tonne. Besides, the ASF is slashing meal demand, making cottonseed meal to trade flat; hence, the upward space of cottonseed meal is still curbed. Buyers can just wait on the sidelines.
(USD $1=CNY 6.93)
