Today (Jan. 31st), the market for meals in China is shown as follows:
Soybean meal: Soybean meal spots steadily inch higher upon slight rebounds of futures to attract some deals at low prices. Specifically, the price go up by 10 yuan/tonne to settle at 2,680-2,810 yuan/tonne in coastal areas. (Tianjin 2,710, Shandong 2,680-2,710, Jiangsu 2,690-2,810, Dongguan 2,730-2,820, and Guangxi 2,720-2,810). While soybean supply may get tight later for its arrivals have markedly dropped by 20% in the first quarter against one year ago, inventory pressure of soybean meal has been briefly eased, in addition to another round of stockpiles after the Spring Festival; hence, oil mills are propping up the price, making it post some small rebounds today. But the market is somewhat stifled by optimistic prospect for US-China trade talks and the completion of the stockpiling for the festival. Overall, short-term soybean meal price may fluctuate in a narrow range. Participants can pay attention to outcome of trade talks, and buyers are suggested to make appropriate replenishment upon forward basis below 50 yuan/tonne and be cautious in forcing up the price.
Imported rapeseed meal: The price for imported rapeseed meal stays basically stable today, of which it is 2,100-2,200 yuan/tonne in coastal areas, steadily up by 10-30 yuan/tonne. (Guangxi 2,130, up 30; Guangdong 2,120; and Fujian 2,200). On one hand, inventories of soybean meal and rapeseed meal have both remained low. On the other, soybean and rapeseed may post supply tensions, for oil mills have signed few contracts for rapeseed cargoes with shipment after March and first-quarter soybean arrivals have declined sharply by 20% against one year ago. But there is little space for price rebounds under active arbitrage of long oils and short meals amid slack aquaculture and contagious ASF. Overall, short-term rapeseed meal market may fluctuate narrowly to adjust, and buyers can wait on the sidelines for guidance from trade talks.
Imported fishmeal: Today, imported fishmeal keeps steady in price with limited space for price negotiations and 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 66,000 tonnes, Fuzhou 31,000 tonnes, Shanghai 50,000 tonnes, Tianjin 1,000 tonnes, Dalian 12,000 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 1,230 USD/tonne for Peruvian ordinary SD fishmeal with 65% protein content and at 1,530 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. Domestic fishmeal market is shored up by stable quotation in foreign market and price inversion both at home and abroad. But fishmeal market remains tepid for its slow shipments amid slack demand and upcoming festival, so that holders tend to wait on the sidelines. Overall, fishmeal price will probably stay stable before the Spring Festival.
Cottonseed meal: Today soybean meal spots stay stable with some rise of 10-20 yuan/tonne. Cottonseed meal market holds steady with the low and declining operation rate of cottonseed oil mills and the low cottonseed meal output owing to the poor crush margin and the upcoming Spring Festival. However, China's meals markets is negative as ASF continues to spread in China, and sources said the decline of pigs raising after holiday is expected to be over 20%, as well as the upcoming US-China talks. Buyers maintain cautious about market involvement. So cottonseed meal market is curbed, and the prices in the short run are likely to move in narrow range.
(USD $1=CNY 6.70)
