Today (Dec. 10th), the market for meals in China is shown as follows:
Soybean meal: US soybean closed higher last Friday as China and US are working to propel trade deals, and meals on the Dalian Commodity Exchange (DCE) fluctuate to go lower. Soybean meal stays stable to decline in coastal areas and trades a little. The price is 2,970-3,070 yuan/tonne in coastal areas, down by 20-30 yuan/tonne from last Friday. (Tianjin 2,990, Shandong 2,970-3,070, Jiangsu 2,970-3,070, Dongguan 2,970-3,070, and Guangxi 2,970-3,070). Aquaculture has basically completed, while the African swine fever (ASF) still wrecks havoc. Moreover, downstream companies are inactive in purchasing due to the slumps of meals on the DCE. Therefore, soybean meal sees a light trading volume recently, and its stock pressure still hovers amid slow shipments. In addition, there is a rumor that China is to buy 5.0 Mln tonnes of US soybean. In this context, domestic soybean meal market will be under pressure. Generally speaking, short-term soybean meal will go weak in fluctuations, and buyers can just take hand-to-mouth buying. What is more concerning now is when China will restart US soybean imports, since soybean supply will get relatively tight in January and February if the import is not resumed before that.
Imported rapeseed meal: The price for imported rapeseed meal stays stable to edge down today, of which it is 2,200-2,280 yuan/tonne in coastal areas, down by 10-20 yuan/tonne partially. (Guangxi 2,230, stable; Guangdong 2,250, stable; Fujian 2,300, stable). Rapeseed meal stock has dropped by 15% to 17,000 tonnes in coastal areas last week. Besides, oil mills are propping up the price as the trade spat is yet to finish and still has some uncertainties. But the demand from aquaculture is unobserved in winter whilst the ASF is wreaking havoc, so soybean meal still has a high inventory. What’s more, Brazilian farmers are expecting a bumper harvest as their soybeans are growing well. In this case, rapeseed meal market is weighed down. Overall, short-term rapeseed meal market will likely follow its futures to post narrow fluctuations. Buyers can replenish properly on the dips and be cautious when forcing 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 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. 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. Stocks at port: Huangpu 77,000 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: 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. Holders are bearing pressure now, for fishmeal still holds a high inventory due to slow shipments at ports under overall light demand. Moreover, fishing progress has been going well in Peru. Therefore, short-term fihsmeal market will probably stay stable to go weak.
Cottonseed meal: Meal futures on the DCE continue to go lower today. Soybean meal spots step down by 20-30 yuan/tonne, and cottonseed meal has been trading light when buyers are cautious in purchasing amid dismal demand from aquaculture and it falls by 50 yuan/tonne partially for there are no buyers. But its decline is restricted by its small output and the high price of cottonseed. Overall, short-term cottonseed meal may go weak in fluctuation. By the way, China is said to buy some 5.0 Mln tonnes of US soybean, and buyers can just wait on account of the existing bearish factors.
(USD $1=CNY 6.88)
