Today (Dec. 24th), the market for meals in China is shown as follows:
Soybean meal: US soybean closed with losses last Friday upon an improved outlook for soybean production in South America. Meals retreat after a lower open on the Dalian Commodity Exchange (DCE), and soybean meal points to declines and sees few deals in coastal areas. The price is specifically at 2,860-2,950 yuan/tonne, down by 30-50 yuan/tonne from last Friday. (Tianjin 2,890, Shandong 2,870-2,900, Jiangsu 2,860-2,920, Dongguan 2,870-2,950, and Guangxi 2,870-2,900). Shipping data showed that a cargo of US soybean had been unloaded at Qingdao port last Friday, amid more orders for US soybean from China importers. In the meantime, Brazilian soybean, which is expected as a bumper crop this year, is being harvested and will go marketing soon, probably with some 2.0 Mln tonnes to be shipped in January. In addition, domestic consumption for soybean meal presents a weaker appearance due to the ongoing African swine fever (ASF). To make the market worse, the State Council announced today the removal of tariff from current 5% for alternative meals, including rapeseed meal, cotton meal, peanut meal and palm meal from Jan. 1, 2019. As a result, soybean meal is dragged down by the biggest loser, rapeseed meal, on the DCE today. In the absence of bullish news, short-term soybean meal may continue to move down with fluctuations, but may pick up moderately amid soybean shortage and peak season of stockpiles before festival in January. Buyers can just stay on the sidelines to buy on the dips after steady declines.
Imported rapeseed meal: The price for imported rapeseed meal steps down today, of which it is 2,060-2,140 yuan/tonne in coastal areas, down 30-50 yuan/tonne. (Guangxi 2,070, down 10; Guangdong 2,110, down 10; and Fujian 2,140, down 20). A statement by the State Council unveiled that import tariff for such mixed meals as rapeseed meal, cottonseed meal, peanut meal and palm meal would be removed from 5% to zero from January 1, 2019. Besides, rapeseed meal stock nationwide has swollen by 14% to 31,000 tonnes last week, and domestic soybean crush has pointed to a rise to 1.70 Mln tonne last week and will jump to 1.75-1.80 Mln tonnes in the coming two weeks. Meanwhile, Brazilian farmers are now cutting their bumper soybeans and have them market soon. But on the demand side, meal market is still subject to the off-season aquaculture and the rampant ASF. By the way, China and the US last Friday held vice-ministerial level telephone talks and achieved new progress. Generally speaking, rapeseed meal will likely fluctuate to post modest declines in the short term, and buyers can wait for steady price declines to see if there is any need to market replenishment.
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 20,000 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. Holders are under pressure in sales in that the trading volume presents a light picture at all ports amid weak demand, coupled by rapid fishing progress in Peru, but most of them are attempting to reduce their loss in the red; hence, short-term fishmeal market will stay stable with some declines amid limited quotation changes.
Cottonseed meal: Meals on the DCE continue to post losses today, led by rapeseed meal futures. Soybean meal spots fall by 30-50 yuan/tonne, and cottonseed meal is priced lower by 40-100 yuan/tonne amid poor demand from off-season aquaculture and contagious ASF. In state side, China is carrying out further and smooth talks with the United States, and its State Council announced today that import tariff on mixed meals including rapeseed meal, cottonseed meal, peanut meal and palm meal would be removed from 5% to zero from January 1, 2019. In the near term, cottonseed meal may maintain its weak trend in fluctuation, and buyers can just stay on the sidelines.
(USD $1=CNY 6.90)
