Today (Nov. 20th), the market for meals in China is shown as follows:
Soybean meal: US soybean slumped overnight on a depressed prospect for a US-China trade agreement later this month after US Vice President Mike Pence took aim at China’s Belt and Road Initiative at an OPEC summit, which finally closed without a routine joint statement this time. However, meals on the Dalian Commodity Exchange (DCE) pare gains after low opens for negative fundamentals instead of rebound on trade concerns as usual, but the declines fluctuate to narrow down after early downturns. Soybean meal spots slip and trade light. The price is 3,200-3,290 yuan/tonne in coastal areas, down 10-30 yuan/tonne from yesterday. (Tianjin 3,230, Shandong 3,200-3,250, Jiangsu 3,220-3,250, Donguan 3,230-3,250, and Guangxi 3,270-3,290). The trading volume has been light recently due to slack demand from aquaculture and ongoing outbreaks of African swine fever (ASF). And the overall market turns bearish for a smaller-than-expected soybean supply gap in China as Brazilian soybean will be harvested within one month. But buyers and sellers lean toward a more cautious approach on account of uncertainties in trade frictions, so soybean meal will probably see no slump and may follow its futures to fluctuate frequently. Buyers are suggested to keep a light stock provisionally and those out of stock can replenish properly on the dips if meals on the DCE stop falling in afternoon deals.
Imported rapeseed meal: The price for imported rapeseed meal steps down today, of which it is 2,330-2,490 yuan/tonne in coastal areas, down 20-30 yuan/tonne. (Guangxi 2,330, down 30; Guangdong 2,370, down 30; Fujian 2,490, down 30). Meal market is in bearish stance amid slack demand from aquaculture and the contagious ASF. In addition, soybean supply gap will be smaller than anticipated in China as Brazil will be able to harvest its soybean within one month. However, the overall meal market will probably see no slump due to the uncertainties in trade disputes, so rapeseed meal spots may follow the futures to post frequent fluctuations in the short term. Buyers can just take hand-to-mouth basis while waiting for the outcome of the meeting later this month.
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 73,000 tonnes, Fuzhou 36,000 tonnes, Shanghai 56,000 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. Fishing bans in certain waters are released from time to time, though current situation is satisfactory in central-northern Peru. In addition, holders are bearing high costs and market participants are still in wait-and-see mood. Therefore, fishmeal market will post limited volatility in the near term.
Cottonseed meal: Cottonseed meal market remains weak amid light trading, for buyers are cautious recently with the upcoming meeting between the US and Chinese presidents later this month. In addition, soybean meal spots slip by 10-30 yuan/tonne for a growing inventory, despite a depressed prospect for a US-China trade deal after the APEC summit closed without a routine joint statement. But cottonseed meal is now more resilient than soybean meal as its demand has increased due to its enlarged price spread with the latter and oil mills are supporting the price for the stress-free supply. On the whole, short-term cottonseed meal market may post narrow fluctuations.
(USD $1=CNY 6.94)
