Today (Dec. 21st), the market for meals in China is shown as follows:
Soybean meal: Soybean stateside dropped further in overnight session, and meals on the Dalian Commodity Exchange (DCE) point to losses fractionally today. Domestic soybean meal declines steadily and reports few deals. Specifically, the price sheds 10-20 yuan to 2,900-2,980 yuan/tonne in coastal areas. (Tianjin 2,950, Shandong 2,940-2,980, Jiangsu 2,920-2,970, Dongguan 2,910-2,970, and Guangxi 2,900-2,970). After a few batches of nearly 3.0 Mln tonnes of US soybean purchases, China is likely to buy another over 2.0 Mln tonnes before the Christmas holiday. Meanwhile, Brazil has started to market its soybean amid bumper harvests. In addition, soybean meal consumption is waned by the rampant African swine fever (ASF). Thus, soybean meal can only find few upward potentials. But the market is to some extent buoyed by overall soybean crush losses and the tighter supply of soybean meal in Shandong, whose city, Rizhao, has seen all its oil mills being in downtime for environmental requirements. In this case, there is little downside space. On the whole, short-term soybean meal may maintain narrow fluctuations, and buyers can provisionally wait to buy on the dips after steady falls.
Imported rapeseed meal: The price for imported rapeseed meal steps down steadily, of which it is 2,080-2,160 yuan/tonne in coastal areas, down by 10-20 yuan/tonne. (Guangxi 2,080, stable; Guangdong 2,120, down 20; and Fujian 2,160, down 10). The first-cut soybeans will come into season in late December in Brazil. And sources said that China has planned to make a third round of U.S. soybean purchases within days amid smooth talks between Beijing and Washington, and the market also rumored US DDGS may find its way back to China in batches. And domestic meal demand is still subject to the off-season aquaculture and the contagious ASF. On the whole, rapeseed meal market will likely present frequent fluctuations in the short term, and it is not advisable to force up the price too high.
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. Domestic fundamentals have fallen bearish as fishmeal stock has hit a high level of 190,000 tonnes at ports amid overall soft demand. In addition, both domestic and foreign markets come under pressure from rapid catch progress in Peru. As holders become weak in sales, short-term fishmeal market will likely post a weak trend.
Cottonseed meal: The price for cottonseed meal holds steady today since mills have grasped such two points as small output of cottonseed meal and high cost of cottonseed to support the price. But meals on the DCE fall back slightly today, and soybean meal spots follow to go down steadily by 10-30 yuan/tonne. Currently, cottonseed meal market is curbed by its sluggish shipment under dismal demand due to the off-season aquaculture and the ASF. In addition, China has planned to hold trade talks face to face with the US in January in view of smooth talks at present. In the short term, cottonseed meal will probably decline with narrow fluctuations, and buyers can take hand-to-mouth buying.
(USD $1=CNY 6.89)
