Today (Dec. 20th), the market for meals in China is shown as follows:
Soybean meal: US soybean closed with losses last night, and meals on the Dalian Commodity Exchange post narrow fluctuations. Domestic soybean meal stays stable with some fluctuations to see a light trading volume. The price is 2,920-3,000 yuan/tonne in coastal areas, fluctuating by 10-20 yuan/tonne. (Tianjin 2,960, Shangdong 2,950-3,000, Jiangsu 2,930-3,000, Dongguan 2,920-2,990, and Guangxi 2,920-2,980). That China has bought nearly 3.0 Mln tonnes of US soybeans has sent few waves to the market, for it has been well below anticipations. Furthermore, all oil mills have provisionally powered off their machines for environmental concerns and soybean crush losses in Rizhao, Shandong, where soybean meal has further strained its already tight supply. Soybean meal is thus propped up in price. Nevertheless, while Brazil is to market its bumper soybean harvests, downstream buyers are in sluggish consumption since domestic aquaculture is in the off-season and the African swine fever is wreaking havoc. And in Guangdong, the spot price has even leveled off the futures on the DCE. In the short term, soybean meal will seek little potential for price hikes and may maintain its narrow fluctuations. Buyers who have completed replenishment can just stay on the sidelines.
Imported rapeseed meal: The price for imported rapeseed meal stays stable to rise today, of which it is 2,080-2,170 yuan/tonne, up 10-20 yuan/tonne. (Guangxi 2,080, stable; Guangdong 2140, up 10; and Fujian 2,170, up 10). The price spread between soybean meal and rapeseed meal has reached a high point unseen in years, of which it is over 900 yuan/tonne in Guangxi; hence, rapeseed meal is propped up in price. But while Brazil is to market its bumper soybean harvests, domestic demand for meal is now crippled by the off-season aquaculture and the contagious ASF. Moreover, Beijing and Washington will hold trade talks face to face in January after the phone call at the vice-ministerial level. Rapeseed meal thereby has limited room to go upside. Overall, short-term rapeseed meal market may still fluctuate frequently, and buyers are not suggested to force 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 34,000 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 stocks maintain at high levels amid constrained shipment under soft demand for fishmeal overall. In addition, Peru has completed its new catch by over 80%. Therefore, fishmeal is thrown into bearish stance. Holders at port are in stronger willingness to sell their fishmeal at favorable prices. On the whole, fishmeal will probably stay stable to go weak in the short term.
Cottonseed meal: US soybean went down overnight, and meals on the DCE post fluctuations today. Soybean meal spots fluctuate by 10-20 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. In addition, China and the United States have scheduled to hold talks face to face in January. Overall, short-term cottonseed meal may still fluctuate narrowly, and buyers can just take hand-to-mouth tactic.
(USD $1=CNY 6.90)
