Today (Nov. 22nd), the market for meals in China is shown as follows:
Soybean meal: US soybean closed higher last night for improving market sentiment on trade tensions after US President Donald Trump told reporters that negotiations between Washington and Beijing go really well and that Beijing wants a deal, in addition to a report that US decided not to send White House adviser Peter Navarro (the radical China hawk) to attend the President Trump-President Xi meeting. And today meals on Dalian Commodity Exchange (DCE) erase previous gains to fall back, and domestic soybean meal spots also stay stable to decline and trade worse. The price is 3,230-3,280 yuan/tonne in coastal areas, down 10-20 yuan/tonne from yesterday. (Tianjin 3,240, Shandong 3,230-3,280, Jiangsu 3,250-3,280, Donguan 3,250-3,270, and Guangxi 3,280-3,300). While more and more oil plants choose to process domestic soybean in China, Brazil is going to harvest its new soybean in mid-to-late December thanks to a record seeding pace. Therefore, soybean supply will post a far smaller-than-expected gap later. In addition, soybean meal now holds a relatively high inventory as hog farmers are unwilling to replenish under frequent outbreaks of African swine fever. And buyers are also cautious in purchasing on account of the meeting next week. In this case, soybean meal will probably show no unilateral surge or slump and may follow its futures to post frequent fluctuations. Buyers can take hand-to-mouth basis while waiting for the guidance from trade trends.
Imported rapeseed meal: The price for imported rapeseed meal remains stable today, of which it is 2,360-2,510 yuan/tonne in coastal areas. (Guangxi 2,360, stable; Guangdong 2,390, stable; Fujian 2,510, stable). Rapeseed meal consumption goes lower and lower under slack demand from aquaculture and frequent outbreaks of the ASF. In addition, the market turns negative upon the fact that Brazil will be able to harvest its new soybean in mid-to-late December. On the whole, both sellers and buyers will take a cautious approach due to the meeting next week, so rapeseed meal may fluctuate frequently on the back of its futures, and buyers can take hand-to-mouth tactic.
Imported fishmeal: Today, imported fishmeal is quoted lower and can be traded with price negotiations, with normal shipment at port. Northern ports: price goes down by 100 yuan/tonne to 10,300-10,400 yuan/tonne for Peruvian ordinary SD with 65% protein content, down by 100-200 yuan/tonne to 11,000-11,200 yuan/tonne for Japanese SD with 67% protein content and down by 100 yuan/tonne to 11,300-11,400 yuan/tonne for super steam fishmeal with 68% protein content. Southern ports: price goes down by 200 yuan/tonne to 10,300 yuan/tonne for Peruvian ordinary SD with 65% protein content, down by 200 yuan/tonne to 11,000 yuan/tonne for Japanese SD with 67% protein content and down by 100 yuan/tonne to 11,300 yuan/tonne for super steam fishmeal with 68% protein content. Stocks at port: Huangpu 74,000 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. The news of a good fishing situation in Peru amid light demand is quite bearish to fishmeal market, but there is limited room for declines on account of firm foreign market and high import cost.
Cottonseed meal: Meals on DCE give back their previous gains to go lower after US President Donald Trump told reporters that negotiations between Washington and Beijing go really well. Soybean meal slips by 10-30 yuan/tonne due to its growing inventory, and cottonseed meal declines by 20-50 yuan/tonne due to its few deals as buyers are cautious in purchasing before the meeting next week. But the decline is limited by its high cost and small supply. On the whole, cottonseed meal market may fluctuate narrowly in the short term.
(USD $1=CNY 6.93)
