Today (Feb. 26th), the market for meals in China is shown as follows:
Soybean meal: US soybean climbed higher last night, but meal futures pare its early gains to edge down on the Dalian Commodity Exchange today. Soybean meal spots broadly fall in light trading. Specifically, the price goes down by 10-20 yuan/tonne to settle at 2,520-2,620 yuan/tonne in coastal areas. (Tianjin 2,560, Shandong 2,520-2,540, Jiangsu 2,520-2,610, Dongguan 2,560-2,570, and Tianjin 2,580-2,620). Consumption on soybean meal is weighed down by low pig amount under frequent outbreaks of the ASF, so its stockpiles have posted another rise by 14% weekly to 645,000 tonnes in coastal areas. Besides, sustained appreciation of the RMB recently is favorable to lower down import costs. China and the U.S. have made significant progress in talks and President Donald Trump will meet his counterpart Xi Jinping to hammer out a deal. And Secretary of the USDA tweeted that China would purchase additional 10 million tonnes of US soybeans. Therefore, soybean meal market will maintain its weak trend for a lack of bullish supports, and buyers can take hand-to-mouth buying for the moment.
Imported rapeseed meal: The price for imported rapeseed meal stays basically stable today, of which it is 2,090-2,150 yuan/tonne in coastal areas. (Gunagdong 2,100 and Fujian 2,150). There is a sign for a thaw in relationship between China and Canada with growing expectations for a trade deal between China and the U.S., so Chinese importers will likely sign more contracts for rapeseed cargoes later. Moreover, demand from pig feeding is weak under the rampant African swine fever. The market is worried about later meal demand, especially as imports for US DDGS will be open after a trade reconciliation. Short-term rapeseed market is predicted to hold its weak trend and buyers can continue to wait.
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. Port stockpiles of fishmeal has mounted up a little bit for its glut amid slack demand. But holder tend to wait on the sidelines fro the time being, so fishmeal market will probably keep steady in the short term.
Cottonseed meal: Cottonseed meal prices today are stable with a decline of 20 yuan/tonne. Cottonseed meal market is influenced by the negative news that ASF continues to spread; the number of live hogs in breeding is at a low level; the U.S.-China trade talks were good, and U.S. will delay tariff increases on China, and there will be a Summit for President Xi and Donald Trump in March to finalize the trade agreement. US soybeans overnight just saw a slight rise and soybean meal today further fall back, which may drag cottonseed meal 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 wait and see.
(USD $1=CNY 6.70)
