Today (Feb. 28th), the market for meals in China is shown as follows:
Soybean meal: US soybean edged down overnight and meal futures narrow down losses on the Dalian Commodity Exchange today after US chief trade negotiator said in Congress on Wednesday that that China has pledged to purchase an additional $1.2 trillion of U.S. products over six years would not solve trade issues, and the United States would need to maintain the threat of tariffs on Chinese goods for years even if Washington and Beijing manged to strike a deal to push China to make structural policy changes. Soybean meal spots also slow down its declines to attract some deals at low prices, but total trading volume remain small. Specifically, the price goes down by another 20-30 yuan/tonne to settle at 2,450-2,530 yuan/tonne. (Tianjin 2,510, Shandong 2,450-2,470, Jiangsu 2,470-2,520, Dongguan 2,500-2,530, and Guangxi 2,500-2,520). Soybean meal inventories regain with its demand being crippled by the rampant ASF. Soybean supply will not be a problem now that oil mills have begun to crush US soybean, whilst sustained appreciation of the RMB recently will help lower down import cost. Despite slower declines, soybean meal still maintains its weak trend for a lack of rebound impetus. Buyers can take hand-to-mouth buying and replenish properly on the dips if out of stock.
Imported rapeseed meal: Prices for imported rapeseed meal stay stable today, of which it is 2,070-2,130 yuan/tonne in coastal areas, down by 10 yuan/tonne. (Guangdong 2,080 and Fujian 2,130). End demand for feed turns downward, for aquaculture has been in off-season and domestic pig amount has fallen to low points under the contagious ASF, which was reported again in Shanxi. There are increases in inventories of soybean meal and rapeseed meal last week. Besides, US and China presidents are expected to meet in March to strike a deal to end the trade war. China has offered to buy an additional 10 million tonnes of US soybean, and will probably open its imports for US DDGS. Overall, short-term rapeseed meal will maintain its weak trend, and buyers are suggested to stay aside.
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 68,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 53,000 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. Some enterprises have begun their replenishment after the festival, especially when it is favorable to start in advance the aquaculture in Southern parts as the weather warms up, so fishmeal market turns noisier at southern ports. Overall, short-term fishmeal market will broadly keep steady.
Cottonseed meal: Cottonseed meal prices today are stable with a decline of 50 yuan/tonne. And soybean meal prices keep stable with a decline of 20 yuan/tonne due to the poor demand when ASF continues to spread and the number of live hogs in breeding is at a low level. Moreover, the U.S.-China trade talks were good, and there will be a Summit for President Xi and Donald Trump in March to finalize the trade agreement. So buyers are bearish and cottonseed meal go towards weak tendency with fluctuation. However, the downward potential is curbed by the low operation rates in cottonseed oil mills and inadequate supplies of cottonseed meal. Buyers are suggested to stay on the sideline for the present.
(USD $1=CNY 6.69)
