Today (Nov. 13th), the market for meals in China is shown as follows:
Soybean meal: US soybean closed lower yesterday. US ambassador to China said Washington would reach a deal with Beijing on the back of a phone call on making a deal to ease bilateral trade tensions by Representatives of US Treasury Secretary Steven Mnuchin and Chinese Vice-Premier Liu He last Friday, after which traders become optimistic about a trade thaw, with some Chinese importers intending to purchase US soybean with ETD in December and January. Today, meals on the Dalian Commodity Exchange (DCE) gradually expand their losses, and domestic soybean meal spots also decline and trade low. The price is 3,230-3,330 yuan/tonne in coastal areas, down 10-30 yuan/tonne from yesterday. (Tianjin 3,270-3,280, Shandong 3,230-3,300, Jiangsu 3260-3330, Dongguan 3,300-3,330, and Guangxi 3,350). Aquaculture has entered into the slack season, while the contagious African swine fever (ASF) keeps lessening hog replenishment, so soybean meal has traded low recently, with its inventory up by 1% to 970,000 tonnes weekly. Besides, soybean now is well stocked, so operation rate will rally again in the next two weeks, which will be negative to soybean meal market. But the trade dispute still remains as an uncertainty, for which market participants will not go short thoroughly at present. In general, soybean meal market will follow futures to post narrow and frequent fluctuations before the meeting later this month. Buyers can just take hand-to-mouth basis.
Imported rapeseed meal: The price steps down today, of which it is 2,360-2,520 yuan/tonne in coastal areas, down 20-40 yuan/tonne. (Gunagxi 2,360, down 40; Guangdong 2,430, down 20; Zhangzhou Chintex, Fujian 2,510, down 30). Brazilian soybean might be harvested at an earliest date unseen in history. And China is importing a large number of Indian rapeseed meal, Canadian canola meal and Ukrainian sunflower meal to guarantee protein supply amid trade disputes. In addition, to avoid a drag-down by soybean meal slumps in case of a trade thaw at the meeting between Chinese and US presidents later this month, rapeseed meal market will likely follow futures to post narrow fluctuations in the near term, so buyers can just take hand-to-mouth basis. The overall market trend will be guided by the results from the meeting. If the trade dispute is settled at that time, the market will fall; but if not, it will rise.
Imported fishmeal: Today, imported fishmeal is quoted lower and can be traded with price negotiations, with flat delivery at port. Northern ports: price is 10,400-10,500 yuan/tonne for Peruvian ordinary SD with 65% protein content, 11,200-11,300 yuan/tonne for Japanese SD with 67% protein content and 11,400-11,500 yuan/tonne for super steam fishmeal with 68% protein content. Southern ports: price is 10,500 yuan/tonne for Peruvian ordinary SD with 65% protein content, 11,200 yuan/tonne for Japanese SD with 67% protein content and 11,400 yuan/tonne for super steam fishmeal with 68% protein content. Stocks at port: Huangpu 68,000 tonnes, Fuzhou 37,000 tonnes, Shanghai 57,000 tonnes, Tianjin 1,000 tonnes, Dalian 14,000 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. Peruvian government officially released its new fishing quotas today at 2.10 Mln tonnes, after which participants cling to strong wait-and-see mood, with some holders making no offer. In general, short-term market is predicted to fluctuate within a limited range.
Cottonseed meal: Soybean meal spots drop by 10-30 yuan/tonne after a phone discussion for restarting talks by Representatives of US Treasury Secretary Steven Mnuchin and Chinese Vice-Premier Liu He. Cottonseed meal declines 40 yuan/tonne due to its poor demand in face of slack demand from aquaculture and amid the contagious ASF. But oil mills are supporting the price for the inadequate supply when cottonseed is relatively expensive and cottonseed meal demand has increased slightly due to its large price spread with soybean meal, so there is limited room for price declines. On the whole, short-term market may go weak to fluctuate, so buyers can take hand-to-mouth basis.
(USD $1=CNY 6.95)
