Today (Nov. 14th), the market for meals in China is shown as follows:
Soybean meal: US soybean fell after crude oil slump by 7%. Today meals on the Dalian Commodity Exchange (DCE) post further losses, and soybean meal spots also step down and trade flat. The price is 3,190-3,300 yuan/tonne in coastal areas, down 20-50 yuan/tonne from yesterday. (Tianjin 3,210, Shandong 3,190-3,280, Jiangsu 3,200-3,300, Dongguan 3,260-3,280, and Guangxi 3,300-3,330). Due to the slack demand from aquaculture and the negative replenishment under the rampant African swine fever (ASF), soybean meal continues to trade low, leading to another halt for ballooning inventories in some Rizhao oil mills. Besides, the US and China are to restart trade talks on a foreign report that Chinese Vice Premier, Liu He, was preparing to visit the US ahead of a meeting between the two countries' leaders later this month, which means there is a growing hope for a trade thaw. Therefore, oil mills and feed companies become cautious in purchasing soybeans, leaving most forward contracts upon basis without any specified price, as they are waiting for the guidance from the meeting later this month. In general, soybean meal market may extend fluctuations to adjust in the short term, so buyers can just wait, and replenish in small batches on the dips after steady falls if out of stock.
Imported rapeseed meal: The price goes down today, of which it is 2,340-2,510 yuan/tonne in coastal areas, down 10-20 yuan/tonne. (Guangxi 2,340, down 20; Guangdong 2,410, down 20; Zhanghzou Chintex, Fujian 2,510). Domestic meals are now well supplied, of which soybean meal inventory has increased to 970,000 tonnes in coastal areas. In addition, Indian rapeseed meal, Canadian canola meal and Ukrainian sunflower meal are witnessing sharp export growths to China. And Brazil expects to feed the market in January as its soybean has been planted at a fastest speed unseen before. In the meantime, hopes of an easing trade war rose on a foreign report that Chinese Vice Premier, Liu He, was to visit the US ahead of a meeting between the two countries' leaders later this month. Generally, rapeseed meal may follow its futures to post narrow fluctuations to adjust, so buyers can take hand-to-mouth basis while waiting for the meeting.
Imported fishmeal: Today, imported fishmeal is quoted steadily and can be traded with price negotiations, with normal shipment 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 69,000 tonnes, Fuzhou 37,000 tonnes, Shanghai 56,000 tonnes, Tianjin 1,000 tonnes, Dalian 15,000 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. While Peruvian Product Department has officially released its new fishing quotas for central-north areas, holders are mostly waiting for the actual fishing situations while quoting firmly. In general, fishmeal market will mainly stay stable in the near term.
Cottonseed meal: Meals on the DCE pare losses today as hopes of an easing trade war rose on a foreign report that Chinese Vice Premier, Liu He, was preparing to visit the US ahead of a meeting between the two countries' leaders later this month. Soybean meal spots fall 20-50 yuan/tonne, and cottonseed meal also slips by 40-50 yuan/tonne for its poor demand amid slack season of aquaculture and the contagious ASF. But cottonseed price is relatively high and cottonseed meal has seen a slightly increased demand due to its enlarged price spread with soybean meal, while oil mills are supporting the price for the inadequate supply, so cottonseed meal is relatively more resilient than soybean meal. But if the trade war is settled, cottonseed meal may go downward later, so buyers broadly remain cautious. On the whole, short-term cottonseed meal market may go weak to fluctuate and adjust, so buyers can just wait.
(USD $1=CNY 6.95)
