Today (Nov. 21st), the market for meals in China is shown as follows:
Soybean meal: US soybean closed higher overnight, but meals also expand their gains on the Dalian Commodity Exchange (DCE) after a lower open boosted by an escalating US-China tension after USTR office updated Section 301 investigation declaring that China has not fundamentally altered its “unfair” trade practices. Soybean meal spot price goes up and attract some deals at low, but deals are hardly observed for those with large hikes. The price is 3,240-3,320 yuan/tonne, up 20-40 from yesterday. (Tianjin 3,270, Shandong 3,240-3,300, Jiangsu 3,250-3,300, Donguan 3,270-3,290, and Guangxi 3,300-3,320). Hog farmers have been taking a cautious approach in replenishing on account of frequent African swine fever (ASF) outbreaks. Currently, while some large enterprises. Brazil will be able to harvest its new soybean in less than one month. In this context, China’s soybean supply will post a smaller-than-anticipated gap later even if trade war sours. For the uncertainties in trade war and upcoming meeting between the US and Chinese presidents, soybean meal market may seesaw upon trade war news before the end of November, so buyers can take hand-to-mouth provisionally and keep a light stock.
Imported rapeseed meal: The price for imported rapeseed meal does up today, of which it is 2,360-2,510 yuan/tonne in coastal areas, up 20-30 yuan/tonne. (Guangxi 2,360, up 30; Guangdong 2,390, up 20; Fujian 2,510, up 20). Despite the rises today, rapeseed meal market is still curbed by slack demand from aquaculture and frequent outbreaks of the ASF. In addition, Brazil will be able to harvest its soybean in less than a month after an unprecedented seeding pace. Generally, market is in cautious sentiment with the upcoming meeting between the US and China presidents later this month, so rapeseed meal will have limited impetus for price rebounds and may follow its futures to fluctuate narrowly. Buyers can take hand-to-mouth basis provisionally.
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. Fishmeal sale is cultivated by different sentiments for current good fishing situation in north central regions in Peru, so the overall market will probably stay stable before the situation unfolds.
Cottonseed meal: Meals rebound on the DCE after the US declared that China has not fundamentally altered its “unfair” trade practices. Cottonseed meal price is now propped up by its small supply and enlarged price spread with soybean meal, in addition to soybean meal spot hike of 40-60 yuan/tonne today. But its price posts no rise as buyers are cautious in making deals before the meeting between the US and China presidents later this month. On the whole, short-term market may fluctuate narrowly and buyers holding inadequate stock can replenish appropriately on the dips.
(USD $1=CNY 6.94)
