Today (Nov. 28th), the market for meals in China is shown as follows:
Soybean meal: US soybean rebounded sharply overnight upon position adjustment ahead of the meeting. And today meals also post temperate rebounds on the Dalian Commodity Exchange (DCE), but in the spots market, some oil mills whose quotations are a little higher still see losses for dismal demand, while those suffering from large price falls yesterday have enjoyed some slight rallies today, in spite of a light trading volume. The price is 3,110-3,180 yuan/tonne, fluctuating by 10-20 yuan/tonne against yesterday. (Tianjin 3,130, Shandong 3,120-3,170, Jiangsu 3,120-3,170, Donguan 3,120-3,170, and Guangxi 3,120-3,170). While Brazil will market its soybean earlier than expected, China still holds some stocks. Meanwhile, hog farmers are unwilling to make replenishment as the African swine fever (ASF) wreaks havoc, and aquaculture has also entered into the slack season. Besides, downstream companies are taking a cautious approach in view of the upcoming meeting. In this context, soybean meal spot market is weaker than its futures for the dismal demand, especially when some oil mills are holding swollen inventories. Many downstream companies have nearly run short after standing on the sidelines for approximately one month due to the trade uncertainties, so meal prices will post large rallies if the US and China fail to reach a trade deal later this week, but the prices will still go weak on the contrary. Buyers out of stock can replenish appropriately on the dips, but should be prudent in chasing up the price.
Imported rapeseed meal: The price for imported rapeseed meal steps down today, of which it is 2,200-2,330 yuan/tonne in coastal areas, down 20-30 yuan/tonne. (Guangxi 2,200, down 50; Guangdong 2,250, stable; Fujian 2,330, down 30). Short-term rapeseed meal market extends its fluctuations to decline amid light trading volume, for many downstream buyers are awaiting the meeting outcome, in addition to slack demand from aquaculture and outbreaks of the ASF. But finally, the trend will be guided by the meeting. And many downstream companies have nearly run short after standing on the sidelines for approximately one month due to the trade uncertainties, so meal prices will post large rallies if the US and China fail to reach a trade deal later this week, but the prices will still go weak on the contrary. Buyers out of stock can replenish appropriately on the dips, but should be prudent in chasing up the price.
Imported fishmeal: Today, imported fishmeal is quoted steadily and can be traded with price negotiations, with normal shipment at port. Northern ports: price is 10,200-10,300 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. 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. Stocks at port: Huangpu 74,000 tonnes, Fuzhou 36,000 tonnes, Shanghai 56,000 tonnes, Tianjin 1,000 tonnes, Dalian 18,000 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 are in weak sales stance now as fishmeal markets at home and abroad bear pressure for good fishing situations in Peru, in addition to the slack demand, so short-term fishmeal market will probably stay stable to go weak.
Cottonseed meal: Meal demand is now subject to the spread of the ASF and bird flu. Meanwhile, buyers remain cautious for the upcoming meeting between the US and Chinese presidents later this week, so cottonseed meal prices fall another 50 yuan/tonne partially for its light trading volume. But the range of price drops is now restricted by oil mills’ reluctance to sell amid small supply and the high price of cottonseed, in addition to the spot fluctuations of soybean meal by 10-30 yuan/tonne. On the whole, short-term cottonseed meal may show narrow fluctuations to go weak, and buyers can buy on demand while monitoring the trade progress.
(USD $1=CNY 6.95)
