Today (Dec. 17th), the market for meals in China is shown as follows:
Soybean meal: Meal prices for immediate contracts on the Dalian Commodity Exchange (DCE) fluctuate to rise today, and soybean meal spots stay stable to go up and attract some deals at low prices. The price is 2,920-2,990 yuan/tonne in coastal areas, steadily increasing by 10-20 yuan/tonne from last Friday. (Tianjin 2,960, Shandong 2,930-2,980, Jiangsu 2,920-2,980, Dongguan 2,910-2,970, and Guangxi 2,960-2,980). The market has not been influenced much by the resumption of US soybean purchases, for China has just imported a limited volume. Besides, operation rate has been dropping due to soybean crush losses so that some Shandong oil mills have controlled their orders to pick up soybeans. In this case, soybean meal prices are prevented from declining. However, the market is now in cautious mood in view of the upcoming bumper harvests of Brazilian soybean, coupled by a possible suspension of additional tariff on US soybean after China said it would temporarily halt its additional tariff on vehicles made in the United States. Therefore, short-term soybean meal price will also seek little upward potential, and may maintain its narrow fluctuations. Buyers are suggested to make proper replenishment on the dips and be careful when forcing up the prices.
Imported rapeseed meal: The price for imported rapeseed meal steps down today, of which it is 1,990-2,100 yuan/tonne in coastal areas, down by 20-50 yuan/tonne partially. (Guangxi 2,100, down 50; Guangdong 2,100, down 50; Fujian 21,00, down 20). On one hand, the inventory of rapeseed meal has increased by 21% to 21,000 tonnes in coastal areas last week; in addition, domestic soybean meal is also in adequate stocks, whilst US soybean imports have been resumed and Brazilian soybean will witness a new record harvest soon. On the other, meals are in dismal demand as aquaculture has entered slack season and the African swine fever is still wreaking havoc. Therefore, rapeseed meal prices have been curbed. Generally speaking, the market is still digesting negative impacts from the restart of US soybean imports, so short-term rapeseed meal may follow its futures to post weak fluctuations in the absence of positive supports. Buyers can just wait on the sidelines and replenish appropriately on the dips after the price falls steadily.
Imported fishmeal: Today, imported fishmeal is quoted steadily and can be traded with price negotiations, with normal shipment at port. Northern ports: price is 9,800 yuan/tonne for Peruvian ordinary SD with 65% protein content, 10,600-10,700 yuan/tonne for Japanese SD with 67% protein content and 10,800-10,900 yuan/tonne for super steam fishmeal with 68% protein content. Southern ports: 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.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. 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. Port stock of fishmeal has remained high amid overall soft demand, and both domestic and foreign market are under pressure as fishing progress has reached 70% in Peru. In this context, short-term market will probably still stay stable to go weak.
Cottonseed meal: Domestic meal market is now in bearish stance as US President Donald Trump tweeted that “a big and very comprehensive deal could happen, and rather soon” between Washington and Beijing after China announced to temporarily halt additional tariff on US-made vehicles. Cottonseed meal goes down by 30-100 yuan/tonne today amid limited demand under the rampant African swine fever. But factories are inclined to prop up the price due to its small output and high cost of cottonseed, as well as the rebound of soybean meal spots by 10-20 yuan/tonne today. Overall, short-term cottonseed meal may still declines with small fluctuations, and buyers can just wait on the sidelines.
(USD $1=CNY 6.90)
