Today (Dec. 6th), the market for meals in China is shown as follows:
Soybean meal: US soybean extended its gains last night, and meals also rise on the Dalian Commodity Exchange (DCE) today. Domestic soybean meal spots edge up except some losses among factories of Yihai Kerry (an overseas Chinese enterprise that is invested by Wilmar International Limited in Mainland China), of which there are some deals at lows but very few for those with large price hikes. After continuous declines and oversold conditions, futures for meals enter into technical rebound corrections, and soybean meal spots also reverse to rebound. The price is 3,020-3,100 yuan/tonne in coastal areas, a rise of 20-40 yuan/tonne from yesterday. (Tianjin 3,050, Shandong 3,020-3,100, Jiangsu 3,030-3,100, Dongguan 3,030-3,090, and Guangxi 3,070-3,120). Bloomberg news said China has begun preparing to restart imports of U.S. soybeans and liquefied natural gas to confirm the?claims?of the US President Donald Trump, but it is unknown whether China would cut relative tariffs. And it is possible that Beijing could?reimburse?buyers for the tariffs they pay. In addition, Brazilian farmers are poised to harvest their soybeans later this month thanks to the favorable growth conditions. In the meantime, soybean meal demand has been soft recently as aquaculture has been in slack season and the African swine fever (ASF) still wreaks havoc. Therefore, soybean meal will find limited room to rebound under the trade detente and bearish sentiment on supply, and the overall trend may post weak fluctuations. Buyers are suggested not to force up the price excessively, but to replenish properly on the dips.
Imported rapeseed meal: The price for imported rapeseed meal goes up today, of which it is 2210-2300 yuan/tonne in coastal areas, up 30-60 yuan/tonne. (Guangxi 2,230, up 50; Guangdong 2,250, up 60; Fujian 2,300, up 50). A foreign media reported said that China has been preparing to restart US soybean imports, with a volume of 6.0-8.0 Mln tonnes. US soybean posted a fourth-consecutive-session gains last night, and futures for domestic meals, after oversold technically, also rebound today. In addition, rapeseed meal is now of small stock so that it manages to rebound in coastal areas. However, meals are now subject to slack demand from aquaculture and rampant ASF when soybean meal still owns a relatively huge inventory, in addition to a trade detente; hence, rapeseed meal will have little room to rebound and may fluctuate frequently. Buyers are suggested to replenish in small batches on the dips, but not to chase up the price excessively.
Imported fishmeal: Today, imported fishmeal is quoted steadily and can be traded with price negotiations, with normal shipment at port. Northern ports: the price is 10,000-10,100 yuan/tonne for Peruvian ordinary SD with 65% protein content, 10,800-11,000 yuan/tonne for Japanese SD with 67% protein content and 11,100-11,200 yuan/tonne for super steam fishmeal with 68% protein content. Southern ports: the price is 10,000 yuan/tonne for Peruvian ordinary SD with 65% protein content, 10,800 yuan/tonne for Japanese SD with 67% protein content and 11,100 yuan/tonne for super steam fishmeal with 68% protein content. Stocks at port: Huangpu 76,000 tonnes, Fuzhou 36,000 tonnes, Shanghai 56,000 tonnes, Tianjin 1,000 tonnes, Dalian 19,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. Spot quotations (FOB) in foreign market keep steady to decline: Peruvian ordinary SD fishmeal with 65% protein content is quoted at 1,250 USD/tonne and 1,530 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. Both foreign and domestic markets are weighed down by good fishing conditions in Peru so that the quotation become somewhat loose. In addition, stock pressure has been accumulating amid soft demand in domestic markets. Therefore, short-term fishmeal market may step down.
Cottonseed meal: Cottonseed meal falls by another 20-50 yuan/tonne partially for the light trading volume as buyers are cautious amid dismal demand from aquaculture, in addition to bearish fundamentals for soybean meal and uncertainties in trade frictions. But today meals on the DCE enlarge gains after a higher open and soybean meal spots also increase by 30-50 yuan/tonne. Besides, cottonseed is of high price and cottonseed meal is in small output. So there is little room for cottonseed meal to drop. Overall, short-term cottonseed meal market may show weak fluctuations, and buyers can keep watching whether China will restart US soybean imports.
(USD $1=CNY 6.87)
