Today (Dec. 7th), the market for meals in China is shown as follows:
Soybean meal: US soybean erased its gains to fall amid concerns over the US-China trade relationship after the arrest of Huawei CFO. Today meals on the Dalian Commodity Exchange (DCE) also stop rising to decline, and soybean meal spots step down to trade a little. The price is 3,000-3,080 yuan/tonne in coastal areas, down by 20-40 yuan/tonne from yesterday. (Tianjin 3,010, Shandong 3,000-3,080, Jiangsu 3,000-3,090, Dongguan 3,000-3,080, and Guangxi 3,070-3,080). Soybean meal still faces pressure on the stock as downstream companies are slow in taking delivery amid a light trading volume when the aquaculture has almost completed and the African swine fever (ASF) is wreaking havoc. In addition, Brazil will start its soybean harvest in the second half of December. The Huawei arrest is said to have little influence, and the Ministry of Commerce said Beijing is confident in clinching a deal with Washington with 90 days. Moreover, China is said to have begun preparing to purchase US soybean with the State Reserve Bureau being the forerunner. Overall, soybean meal will remain weak in fluctuations in the short term, and buyers can wait or buy on hand-to-mouth basis.
Imported rapeseed meal: The price for imported rapeseed meal stays stable to slip slightly, of which it is 2,210-2,300 yuan/tonne in coastal areas, down by 20 yuan/tonne partially. (Guangxi 2,230, stable; Guangdong 2,250, stable; Fujian 2,300, stable). Meal demand is being crippled as aquaculture has entered into slack season and the ASF still wreaks havoc, whilst soybean meal owns a high inventory and goes down 20-40 yuan/tonne; hence, rapeseed meal market is weighed down. But global rapeseed supply is facing some issues where Canada has reduced its output forecast and the EU is also subject to droughts. Therefore, rapeseed meal is resilient as oil mills are propping up the price, but it is also difficult to post rises amid the trade truce. Generally speaking, short-term market may fluctuate narrowly on the back of its futures, and buyers can replenish on the dips and shall be careful in chasing up the price.
Imported fishmeal: Today, imported fishmeal is quoted lower and can be traded with price negotiations, with normal shipment at port. Northern ports: price is 9,900-10,000 yuan/tonne for Peruvian ordinary SD with 65% protein content, 10,700-10,900 yuan/tonne for Japanese SD with 67% protein content and 11,000-11,100 yuan/tonne for super steam fishmeal with 68% protein content, each down by 100 yuan/tonne from yesterday. Southern ports: price is 9,800 yuan/tonne for Peruvian ordinary SD with 65% protein content, 10,600 yuan/tonne for Japanese SD with 67% protein content and 10,900 yuan/tonne for super steam fishmeal with 68% protein content, each down by 200 yuan/tonne from yesterday. Stocks at port: Huangpu 76,000 tonnes, Fuzhou 36,000 tonnes, Shanghai 56,000 tonnes, Tianjin 1,000 tonnes, Dalian 20,000 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. The fishing progress in Peru has written a record unseen in recent years so that markets are bearing pressure both at home and abroad. Moreover, there is increasing pressure on domestic stocks. Therefore, short-term fihsmeal market will probably stay stable to go weak.
Cottonseed meal: US soybean reversed to slide amid concerns over the US-China relationship after the arrest of Huawei CFO, and today meals also decline slightly on the DCE today. Soybean meal spots slip by 20-40 yuan/tonne, and cottonseed meal basically remains stable as buyers are cautious amid soft demand from aquaculture. The price decline of cottonseed meal now is limited thanks to its small output and the high price of cottonseed. Overall, short-term cottonseed meal may still fluctuate to go weak. By the way, there is a rumour that China is to restart US soybean imports, so buyers can keep an eye on it.
(USD $1=CNY 6.87)
