Today (Dec. 19th), the market for meals in China is shown as follows:
Soybean meal: US soybean closed with gains last night, for China had bought another 15 cargoes of 900,000 tonnes of soybeans for shipment from January to March. And meals on the Dalian Commodity Exchange (DCE) continue modest rises today, and domestic soybean meal spots stay stable to edge up to attract some deals at low prices. The price goes up steadily by 10-30 yuan/tonne to 2,920-3,000 yuan/tonne. (Tianjin 2,970, Shandong 2,940-3,000, jiangsu 2,930-3,000, Dongguan 2,920-2,990, and Guangxi 2,950-3,000). Meals on the DCE post no loss today since the market has not been hurt much by the soybean purchase. In addition, there are still losses in soybean crush, and the additional tariff on US soybean imports has not been lifted. Furthermore, weekly soybean crush volume has dropped to a relatively low level of 1.60 Mln tonnes due to a fourth-consecutive-week decline in operation rate. In this case, soybean meal is buoyed to rebound in price as it is forecast to ease its supply pressure. Nevertheless, due to the slack demand from aquaculture and the outbreaks of the African swine fever (ASF), downstream buyers are slow in consumption, with Guangdong dealers even providing their quotations by M01-10. Its spot price rises being restricted, soybean meal may follow its futures to post narrow fluctuations frequently in the short term. Buyers are suggested to keep adequate stock upon low prices, and not to force up the price excessively.
Imported rapeseed meal: The price for imported rapeseed meal goes up today, of which it is to 2,080-2,160 yuan/tonne in coastal areas, up by 10-30 yuan/tonne. (Guangxi 2,080, up 10; Guangdong 2,130, up 20; Fujian 2,160, up 20). Soybean meal is priced higher as the market has not been influenced much by the US soybean purchase. But the whole meal market has come under pressure from a myriad of factors, ranging from the upcoming bumper harvest of Brazilian soybeans and dismal demands under the off-season aquaculture and the rampant ASF, to the smooth trade talks between the United States and China that have scheduled to carry out face-to-face talks in January. In this case, rapeseed meal will find little room for price rises, and may fluctuate frequently in the near term. Buyers are suggested to replenish appropriately up low prices and be cautious in forcing up the price.
Imported fishmeal: Today, imported fishmeal is quoted steadily and can be traded with price negotiations, with normal shipment at port. Quotation at ports: it is 9,700-9,800 yuan/tonne for Peruvian ordinary SD with 65% protein content, 10,500-10,700 yuan/tonne for Japanese SD with 67% protein content and 10,800-10,900 yuan/tonne for super steam fishmeal with 68% protein content. 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. Both domestic and foreign markets come under pressure from a quick catch pace in Peru, with nearly 80% completed. Moreover, domestic stock has been piling up to a high level amid slow port due to soft fishmeal demand. Therefore, holders are in weak sale sentiment now. Overall, fishmeal market may largely run stable with some declines in the near term.
Cottonseed meal: US soybean extended its gains last night, and meals on the DCE also continue to edge up today. Soybean meal spots go up by another 10-30 yuan/tonne, and cottonseed meal is priced steadily since factories are propping up the price amid its small output and relatively high cost of cottonseed. There is no sign of rebounds, mainly due to its slow shipment amid dismal demand crippled by the slack aquaculture and the rampant ASF. Overall, short-term cottonseed meal may still fluctuate narrowly, and buyers are suggested to try to replenish upon low prices and be careful in forcing up the price.
(USD $1=CNY 6.90)
