Today (Dec. 12th), the market for meals in China is shown as follows:
Soybean meal: US soybean edged up last night, and meals on the Dalian Commodity Exchange (DCE) also rise slightly. Soybean meal stays stable to fluctuate in coastal areas today, with a trading volume lighter than yesterday despite some deals upon low basis. The price is 2,980-3,030 yuan/tonne, steadily fluctuating by 10-30 yuan/tonne. (Tianjin 3,000, Shandong 2,990-3,030, Jiangsu 2,980-3,030, Dongguan 2,970-3,030, and Guangxi 3,010-3,030). While Brazil is to market its soybean, China has also restart US soybean imports. In the meantime, aquaculture has already finishes and the African swine fever (ASF) still wreaks havoc, for which some oil mills have limited their production or even powered off their machines for swelling soybean meal inventory under demand slumps. In this aspect, soybean meal market is curbed. But soybean meal has been consumed faster among some Shandong oil mills and has been traded by limited volumes, especially under the crush margins losses. Therefore, there is limited room for soybean meal to decline. Generally speaking, short-term soybean meal may turn into the narrow fluctuations. Buyers are suggested to make proper replenishment in the dips and be careful in forcing up the price. If possible, buyers can try to buy in small batches upon low forward basis.
Imported rapeseed meal: The price for imported rapeseed meal stays stable to down today, of which it is 2170-2250 yuan/tonne in coastal areas, steadily fluctuating by 10-20 yuan/tonne (Guangxi 2,200, stable; Guangdong 2,210, down 20; Fujian 2,250, down 10). Rapeseed meal now is buoyed by its tight supply after its stock fell by 58% weekly to 25,800 tonnes nationwide. But while meal demand is crippled as aquaculture has entered the usual off-season, in addition to the rampant ASF, soybean meal still owns an adequate inventory. Besides, Brazilian soybean is expected to see a bumper harvest, and China is to purchase a substantial amount of US soybean after its relationship with the US has been improved. Therefore, rapeseed meal market is being cracked down. In general, short-term rapeseed meal may follow its futures to post narrow fluctuations, and buyers are suggested to make proper replenishment on the dips and be cautious in driving 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 75,000 tonnes, Fuzhou 35,000 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. Fishmeal stock pressure keeps mounting for its slow shipments amid light demand, together with good fishing situations in Peru, so the market has fallen bearish. Overall, short-term market will stay stable to go weak in the near term.
Cottonseed meal: Soybean meal spots stay stable to fluctuate by 10-20 yuan/tonne today, and cottonseed meal declines by 20-50 yuan/tonne partially as it has been trading light when buyers remain cautious on account of the uncertainties in the trade dispute. But the decline is still restricted by high cost and small output. Overall, cottonseed meal may still fluctuate to go weak in short term, but its decline may still get restricted as soybean meal has also slowed its losses.
(USD $1=CNY 6.89)
