Today (Dec. 27th), the market for meals in China is shown as follows:
Soybean meal: US soybean continued to fall last night, and meals extend their losses after a lower open on the Dalian Commodity Exchange (DCE) upon a report that a U.S. delegation would travel to Beijing to hold trade talks with Chinese officials in earlier January. Soybean meal spots follow to shed by 10-30 yuan/tonne in light trading. Specifically, the price is 2,830-2,900 yuan/tonne in coastal areas, down by 10-30 yuan/tonne against yesterday. (Tianjin 2,870, Shandong 2,850-2,870, Jiangsu 2,830-2,900, Dongguan 2,830-2,880, and Guangxi 2,830-2,850). Planters in Brazil have put their back into harvesting their early soybeans, whose production will hit a new high this year. And China has announced to eliminate the import tariffs on alternative meals. But on the other side, soybean meal has been in light trading due to its sluggish consumption amid the ongoing African swine fever (ASF), so that it has come under pressure from inventory build-ups. In the near term, soybean meal market will follow the futures to decline with slight fluctuations, and buyers can keep staying on the sidelines to see if there is any need to make replenishment.
Imported rapeseed meal: The price for imported rapeseed meal stays stable to inch lower, of which it is 2,030-2,090 yuan/tonne in coastal areas, down by 10-20 yuan/tonne partially. (Guangxi 2,040, stable; Guangdong 2,080, down 20; Fujian 2,090, down 10). Rapeseed meal market is dragged down to negative territory now by following factors. On one hand, China has announced the elimination of import tariffs on mixed meals from January 1, 2019, of which it will be a reduction of about 120 yuan/tonne for rapeseed meal. And planters in Brazil have set to harvest their early soybeans, whose production will hit a new high this year. On the other, meal demand is still subject to the off-season aquaculture and the rampant ASF. Besides, a U.S. delegation will visit Beijing to hold trade talks with Chinese officials in the week of January 7th. But the price decline may hopefully be limited by some stockpiles before the festival in January. On the whole, rapeseed meal market may follow its futures to decline slightly with narrow fluctuations, an buyers can keep waiting to replenish on the dips after steady falls.
Imported fishmeal: Today, imported fishmeal keeps steady in price and can be traded with price negotiations, with normal shipment at port. Quotation at ports: it is 9,600-9,700 yuan/tonne for Peruvian ordinary SD with 65% protein content, 10,400-10,600 yuan/tonne for Japanese SD with 67% protein content and 10,700-10,800 yuan/tonne for super steam fishmeal with 68% protein content. Stocks at port: Huangpu 75,000 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 to rise: Peruvian ordinary SD fishmeal with 65% protein content is quoted at 1,250 USD/tonne and 1,530 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. Due to slow port shipment amid soft demand, port stocks have remain at high levels and holders have been under pressure. But some holders have showed strong willingness to reduce their losses in view of a stable foreign market and the price inversion both at home and abroad. Fishmeal market will post little volatility in the near term.
Cottonseed meal: Meals on the DCE fall back today. In the spot market, soybean meal drops by 20-30 yuan/tonne amid its growing inventories since its demand is still crippled by the contagious ASF, and cottonseed meal posts another partial decline of 30-50 yuan/tonne in stagnant trading. But the price decline of cottonseed meal is now restricted by the relatively high cost and small supply of cottonseed. On the state side, a U.S. delegation will travel to Beijing to hold trade talks with Chinese officials in the week of January 7th, and China has announced previously the elimination of import tariffs on mixed meals from next year. Overall, short-term cottonseed meal market will likely maintain its weak trend in fluctuation, and buyers can briefly stay on the sidelines.
(USD $1=CNY 6.89)
