Today (Nov. 30th), the market for meals in China is shown as follows:
Soybean meal: While US soybean fell last night, meals on the Dalian Commodity Exchange (DCE) fluctuate to rebound fractionally today. Soybean meal stays stable to decline and trades a little in coastal areas. The price is mainly at 3,110-3,170 yuan/tonne, steadily down by 10-20 yuan/tonne from yesterday. (Tianjin 3,130, Shandong 3,110-3,150, Jiangsu 3,110-3,140, Donguan 3,140-3,170, and Guangxi 3,180-3,200). Downstream companies are slow in taking delivery when the market is in strong wait-and-see mood before the meeting between the US and Chinese presidents. In addition, hog farmers are not in a rush to make replenishment as the African swine fever (ASF) wreaks havoc, whilst aquaculture has also entered into the slack season. Subject to weak end demand, soybean meal inventories keep piling up and some oil mills have even halted for swelling stocks. What’s more, while Brazil plans to ship its new soybean to China as early as late December or early January, China still have some stocks at hand; hence, later soybean supply gap will be quite smaller. And all these factors have been weighing on soybean meal spots market. If the US and China reach a deal to settle trade disputes over the dinner at UTC 5:00am this Sunday, soybean prices will extend to go down, otherwise, the prices will rebound substantially. Due to the uncertainties, buyers need to act cautiously provisionally.
Imported rapeseed meal: The price for imported rapeseed meal stays stable to fall today, of which it is 2,200-2,330 yuan/tonne in coastal areas, down 10-20 yuan/tonne partially. (Guangxi 2,220, stable; Guangdong 2,250, down 10; Fujian 2,330, stable). Aquaculture is in low season, while the ASF keeps raging and the?foot-and-mouth?disease and the bird flu have been reported in some regions; thus, rapeseed meal trades light recently as its demand is crippled. But the trend eventually lies in the meeting outcome this early Sunday morning. If the US and China reach a deal to settle trade disputes, rapeseed meal will extend to go down. But the decline will be partly offset by its recent slumps and the sharp rebound of US soybean upon a trade thaw. That is, there is no huge space for declines even if trade war ends. But if no trade deal is reached, it may rebound quickly as middle-and-downstream companies have fallen over-empty. Currently, buyers are suggested to be cautious and replenish to keep reasonable inventories on the dips.
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 75,000 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 under pressure for an increasing stock amid thin demand at home, in addition to relatively rapid fishing progress in Peru, so short-term fishmeal market will probably stay stable to go weak.
Cottonseed meal: Soybean meal spots keep steady to fluctuate by 10-20 yuan/tonne, and cottonseed meal stays stable for its price decline is limited by oil mills’ efforts in hoarding in face of small supply and high-priced cottonseed. But its demand is dismal amid the outbreaks of the ASF and the prevalence of the bird flu. Besides, cottonseed meal trades light as buyers are cautious on account of the meeting between the US and Chinese leaders this Sunday morning. On the whole, short-term cottonseed meal may still post narrow fluctuations to go weak, and buyers can take hand-to-mouth buying while focusing on the meeting outcome.
(USD $1=CNY 6.94)
