Today (Dec. 13th), the market for meals in China is shown as follows:
Soybean meal: US soybean closed higher overnight after China was said to have bought over 500,000 tonnes of soybean by 9-12 cargoes with ETD in January to March, and meals on the Dalian Commodity Exchange post narrow fluctuations today despite the bearish news. The price for soybean meal stays stable to fluctuate in coastal areas, with a trading volume lower than yesterday in spite of some deals upon low basis. The price is mainly at 2,950-3,030 yuan/tonne, steadily fluctuating by 10-20 yuan/tonne. (Tianjin 2,990, Shandong 2,970-3,020, Jiangsu 2,960-3,020, Dongguan 2,950-3,030, and Guangxi 3,000-3,020). Soybean meal has seen relatively more buyers after its price slumps, but oil mills now become more willing to support the price amid severely defective crush margins. However, meal demand is still subject to the rampant African swine fever (ASF). In addition, while soybean will welcome a record harvest in South America with early soybean being harvested probably from this weekend in Brazil, US soybean import has also got resumed. Shaken by bearish factors, the market does not bode well for soybean meal?in the first half of 2019 so that the price now is not strong enough to go up. In the near term, soybean meal market will maintain within narrow fluctuations, and buyers can buy properly upon low basis.
Imported rapeseed meal: The price for imported rapeseed meal steps down today, of which it is 2,130-2,210 yuan/tonne in coastal areas, down by 30-60 yuan/tonne (Guangxi 2,170, down 30; Guangdong 2,180, down 30; Fujian 2,210, down 40). While domestic meal is in liberal supply, coupled by the arrivals of 150,000 tonnes of pellet meal and 100,000 tonnes of sunflower meal this month, meal demand is crippled by the completion of aquaculture and the outbreaks of the ASF. And this has been a big drag on rapeseed meal market. Therefore, short-term rapeseed meal will likely follow its futures to fluctuate narrowly, and buyers can just wait to see if there is any need for replenishment on the dips.
Imported fishmeal: Today, imported fishmeal goes down and can be traded with price negotiations, with normal shipment at port. Northern ports: the price goes down by 100-200 yuan/tonne to 9,800 yuan/tonne for Peruvian ordinary SD with 65% protein content, down by 100-200 yuan/tonne to 10,600-10,700 yuan/tonne for Japanese SD with 67% protein content and down by 200 yuan/tonne to 10,800-10,900 yuan/tonne for super steam fishmeal with 68% protein content. Southern ports: the price is 9,700 yuan/tonne for Peruvian ordinary SD with 65% protein content, 10,500 yuan/tonne for Japanese SD with 67% protein content and 10,800 yuan/tonne for super steam fishmeal with 68% protein content, each down by 100 yuan/tonne. Stocks at port: Huangpu 76,000 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 1,230 USD/tonne and 1,510 USD/tonne for super SD fishmeal with 68% protein content, each down by 20 USD/tonne. 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, coupled by price declines in foreign markets, so the market has been cracked down. Overall, there is some possibility for fishmeal to suffer price declines in the near term.
Cottonseed meal: Cottonseed meal price is stable today as factories are reluctant to sell to support the price amid small output and high cost. But China is said to have bought at least 500,000 tonnes of soybean for 9 vessels with shipping schedule in January to March, which is negative to domestic market. Soybean meal spots fall by 10-20 yuan/tonne, and cottonseed meal market also gets curbed by unobserved new deals for its dismal demand amid the rampant ASF. Overall, short-term cottonseed meal will fluctuate to go weak, and buyers can provisionally take hand-to-mouth buying.
(USD $1=CNY 6.87)
