Today (Nov. 26th), the market for meals in China is shown as follows:
Soybean meal: US soybean closed lower last Friday. Today meals on the Dalian Commodity Exchange (DCE) retreat sharply after a lower open. Soybean meal spots follow to drop and trade light. The price is 3,160-3,220 yuan/tonne in coastal areas, down 20-40 yuan/tonne from last Friday. (Tianjin 3,190, Shandong 3,160-3,220, Jiangsu 3,200-3,230, Donguan 3,200-3,220, and Guangxi 3,200-3,240). Soybean meal market now gets curbed by its own huge inventories as it trades light for following factors. First, the earlier-than-anticipated debut of Brazilian new soybean this year will lessen soybean shortage later. Second, buyers stay cautious while awaiting the upcoming meeting between the US and Chinese presidents at G20 summit. Third, hog replenishment has been decreasing amid the rampant African swine fever (ASF), while the bird flu is on the rise. However, short-sellers will not remain short excessively on account of the uncertainties in the forthcoming meeting, so soybean meal will probably not continue to plunge, and later trend will likely guided by the meeting outcome. Buyers can wait to replenish on the dips after steady falls.
Imported rapeseed meal: The price for imported rapeseed meal stays stable to decline today, of which it is 2,320-2,400 yuan/tonne in coastal areas, down 60-70 yuan/tonne. (Guangxi 2,300, down 60; Guangdong 2,300, down 70; Fujian 2,400, down 80). Rapeseed meal nationwide has increased to 37,000 tonnes by 28% weekly last week, mainly due to slack demand from aquaculture in winter and the contagious ASF. Moreover, even if the trade conflict sours, soybean will post a far smaller-than-anticipated supply gap later as Brazil will be able to harvest its early soybean in mid-to-late next month. The rapeseed meal market is predicted to extend its weak fluctuations before the meeting between the US and Chinese presidents this week and later trend will be largely guided by the meeting outcomes. If the decline is large in this session, buyers with inadequate stock can replenish properly on the dips after steady falls.
Imported fishmeal: Today, imported fishmeal is quoted steadily and can be traded with price negotiations, with normal shipment at port. Northern ports: price is 10,300-10,400 yuan/tonne for Peruvian ordinary SD with 65% protein content, 11,000-11,200 yuan/tonne for Japanese SD with 67% protein content and 11,300-11,400 yuan/tonne for super steam fishmeal with 68% protein content. Southern ports: price is 10,300 yuan/tonne for Peruvian ordinary SD with 65% protein content, 11,000 yuan/tonne for Japanese SD with 67% protein content and 11,300 yuan/tonne for super steam fishmeal with 68% protein content. Stocks at port: Huangpu 74,000 tonnes, Fuzhou 36,000 tonnes, Shanghai 56,000 tonnes, Tianjin 1,000 tonnes, Dalian 17,000 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 holders are pressured by growing stock and fishing situation continues to go well in Peru, the market is now supported by a firm foreign market; hence, short-term fishmeal market will likely stay stable to go weak.
Cottonseed meal: Meals on the DCE suffer steep losses today, followed by soybean meal spots to drop 20-60 yuan/tonne. And cottonseed meal also falls by 50 yuan/tonne for its light trading volume as buyers have been cautious in view of the upcoming meeting and low end demand in aquaculture. But the decline is restricted as oil mills are hoarding their small supply when the cottonseed price is relatively high. On the whole, short-term cottonseed meal market may fluctuate narrowly to go weak, and participants can keep an eye on trade updates. Buyers are suggested to take hand-to-mouth basis.
(USD $1=CNY 6.95)
