Today (Jan. 17th), the market for meals in China is shown as follows:
Soybean meal: US soybean inched higher last night, and meals still post slight losses on the Dalian Commodity Exchange today. Soybean meal spots steadily fall by 10-20 yuan/tonne amid tepid trading. Specifically, the price is 2,700-2,760 yuan/tonne in coastal areas. (Tianjin 2,730, Shandong 2,700-2,740, Jiangsu 2,700-2,760, Dongguan 2,720-2,760, and Guangxi 2,720-2,760). China may move to US market upon their smooth trade talks, and due to rare purchases from Chinese importers, Brazilian soybean price has been heading down since November amid forward discounts. Meanwhile, later market will probably remain bearish due to sharp drops in live pig numbers under the rampant epidemic. Besides, traders are active in taking the arbitrage of buying oils and selling meals. Soybean meal is thereby forced to slip. However, buyers are still stockpiling for the Spring Festival. Consequently, meal futures manage to slow down their declines, and this has helped restrict downward space of meal spots. Buyers can wait for steady falls to make proper replenishment.
Imported rapeseed meal: The price for imported rapeseed meal rises today, of which it is 2,100-2,180 yuan/tonne in coastal areas, up by 10-20 yuan/tonne. (Guangxi 2,100, up 20; Guangdong 2,120, up 20; and Fujian 2,180, up 10). Several oil mills have sealed up their rapeseed for commodity check after unloading amid strained relationship between China and Canada, including two cargoes arriving in Guangxi and Fujian this week. An increasing number of oil mills have powered off their machines, so that rapeseed meal price has got a boost from reduced rapeseed meal output. However, soybean meal market is trapped in a downturn by slack aquaculture and higher-than-expected drops in live pig amount under the African swine fever, in addition to heavy pressure in soybean supply globally. Moreover, China and the U.S. will hold higher-level trade talks later this month. Therefore, rapeseed meal will find little room for large rises and may fluctuate at a narrow range. Buyers can just buy on demand.
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 69,000 tonnes, Fuzhou 31,000 tonnes, Shanghai 51,000 tonnes, Tianjin 1,000 tonnes, Dalian 17,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. Spot quotations (FOB) in foreign market keeps steady: the quotation is unchanged at 1,210 USD/tonne for Peruvian ordinary SD fishmeal with 65% protein content and at 1,510 USD/tonne for super SD fishmeal with 68% protein content. Chilean ordinary fishmeal with 65% protein content is quoted steadily at 1,410 USD/tonne, and prime with 68% protein content at 1,550 USD/tonne. Demand for fishmeal remain unsatisfactory, in addition to cash requirements by some holders, so that domestic market has fallen bearish. However, quotations have been firm on foreign market since sales pressure has been mitigated by active trading in the Peruvian market. Besides, sales sentiment of holders is supported by somewhat eased port stock pressure with the stockpiling underway. In the coexistence of the bull and the bear, fishemal market will go steady in the near term.
Cottonseed meal: Today meals on DCE decline further and soybean meal spots are stable with some decline of 10-20 yuan/tonne. China's meals markets is negative when ASF continues to spread in China, the decline of pigs raising is more than expected, and there will be a higher-level US-China negotiation at the end of this month. Buyers maintain cautious about market involvement. So with limited new orders, cottonseed meal prices today are stable with some decline of 30 yuan/tonne. However, there won't be a big decline as the cottonseed oil mills is under low operation rate due to the poor market condition, and the stockpiling before holiday is still underway. Short-term cottonseed meals will move weakly in narrow range.
(USD $1=CNY 6.77)
