Today (Nov. 27th), the market for meals in China is shown as follows:
Soybean meal: US soybean slumped amid US-China trade worries, and meals fluctuate to fall on the Dalian Commodity Exchange (DCE). Soybean meal spots decline and trade light. The price is 3120-3180 yuan/tonne in coastal areas, down 20-40 yuan/tonne against yesterday. (Tianjin 3,150, Shandong 3,150-3,180, Jiangsu 3,120-3,200, Donguan 3,130-3,150, and Guangxi 3,200-3,220). That the African swine fever (ASF) wreaks havoc has been reducing hog farmers’ desire to make replenishment, whilst the aquaculture is also in the slack season; hence, soybean meal faces dismal demand, coupled by the upcoming meeting, so that soybean market is dragged down to extend declines. But in a latest interview, Trump said he expects to move ahead with raising tariffs on $200 billion in Chinese imports, and if he would also impose tariffs on the rest $267 billion worth of goods if the two countries fail to reach a deal. For the trade uncertainties, buyers can just take hand-to-mouth basis while awaiting the guidance from the meeting results.
Imported rapeseed meal: The price for imported rapeseed meal steps down today, of which it is 2,200-2,360 yuan/tonne in coastal areas, down 50-70 yuan/tonne. (Guangxi 2,250, down 50; Guangdong 2,250, down 50; Fujian not offered). Rapeseed meal demand has been further hurt by the slack season of aquaculture, the spread of ASF and the outbreaks of bird flu. Meanwhile, some oil mills have halted for swollen soybean meal inventories as downstream companies are slow in taking delivery, while Brazil is to harvest its new soybean in mid-to-late next month. Such heavy fundamental pressures, together with the upcoming meeting, will weigh on rapeseed meal market to extend fluctuations to fall. But later trend will largely depend on whether the US and China can reach a deal. Buyers can just wait and replenish on the dips after steady falls.
Imported fishmeal: Today, imported fishmeal is quoted lower and can be traded with price negotiations, with normal shipment at port. Northern ports: price is 10,200-10,300 yuan/tonne for Peruvian ordinary SD with 65% protein content, 10,900-11,100 yuan/tonne for Japanese SD with 67% protein content and 11,200-11,300 yuan/tonne for super steam fishmeal with 68% protein content, each down by 100 yuan/tonne from yesterday. Southern ports: price is 10,200 yuan/tonne for Peruvian ordinary SD with 65% protein content, 10,900 yuan/tonne for Japanese SD with 67% protein content and 11,200 yuan/tonne for super steam fishmeal with 68% protein content, each down by 100 yuan/tonne from yesterday. Stocks at port: Huangpu 74,000 tonnes, Fuzhou 37,000 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. Holders show a looser mood in supporting the price on account of slack demand and good fishing situations in Peru, so short-term fishmeal market will probably stay stable to go weak.
Cottonseed meal: Meals on the DCE fluctuate to fall today, and soybean meal spots decline by 30-50 yuan/tonne. Cottonseed meal falls another 20-50 yuan/tonne as buyers have been cautious in view of the upcoming meeting and low end demand in aquaculture. But the decline is restricted for 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. Participants can keep an eye on trade updates, and buyers are suggested to take hand-to-mouth basis.
(USD $1=CNY 6.94)
