Today (Nov. 19th), the market for meals in China is shown as follows:
Soybean meal: US soybean edged higher last Friday. Meals on the Dalian Commodity Exchange also post small gains today, though still running below the previous session. And soybean meal stays stable to fluctuate and trades a little. The price is 3,210-3,320 yuan/tonne in coastal areas, fluctuating by 10-20 yuan/tonne against last Friday. (Tianjin 3,250, Shandong 3,210-3,270, Jiangsu 3,240-3,300, Dongguan 3,250-3,270, and Guangxi 3,300-3,320). Soybean meal market is now being cracked down by its bearish fundamentals, of which its end demand is subject to the contagious African swine fever (ASF). Domestic market turns negative after a Bloomberg report on the weekend that US Presidents Donald Trump is upbeat about the trade deal after receiving written responses from China and he may not increase the tariffs, so soybean meal may follow its futures to post frequent fluctuations in the short term. If the trade deal is reached at the meeting later this month, soybean meal market will suffer another drop; but if not, it will see a major rally. Buyers need to keep a watchful eye on the uncertainty in the trade war.
Imported rapeseed meal: The price for imported rapeseed meal stabilizes to drop, of which it is 2,360-2,520 yuan/tonne in coastal areas, down by 20 yuan/tonne partially. (Guangxi 2,360, down 20; Guangdong 2,400, stable; Fujian 2,520, stable). Due to weak demands from aquaculture in winter and the ASF, rapeseed meal stock has increased by 73% to 29,000 tonnes in coastal areas last week. In addition, buyers are cautious with the upcoming meeting later this month, so short-term rapeseed meal will find limited space for rebounds and may fluctuate frequently. Buyers can take hand-to-mouth basis.
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 72,000 tonnes, Fuzhou 36,000 tonnes, Shanghai 57,000 tonnes, Tianjin 1,000 tonnes, Dalian 16,000 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. As foreign market remains steady and holders are waiting for the fishing situations in Peru, the market is predicted to have limited room for volatility.
Cottonseed meal: Cottonseed meal keeps steady in its weak territory, which is contributed to its poor deals from careful buyers amid low end demand and uncertainty in the trade spat, in addition to soybean meal spots fluctuating by 10-20 yuan/tonne in its stable state today. However, cottonseed meal will be more resilient than soybean meal, for oil mills are supporting the price for the inadequate supply after cottonseed meal enjoys a marginally increased demand due to its price spread with soybean meal, coupled by the high price of cottonseed. On the whole, short-term cottonseed meal market may present narrow fluctuations, and buyers can keep monitoring trade war developments.
(USD $1=CNY 6.94)
