Today (Feb. 25th), the market for meals in China is shown as follows:
Soybean meal: US soybean inched lower last Friday, and meal futures fall upon lower opens on the Dalian Commodity Exchange today. Soybean meal spots also steps down. Specifically, it goes down by 10-40 yuan/tonne to settle at 2520-2620 yuan/tonne. (Tianjin 2,570-2,580, Shandong 2,520-2,540, Jiangsu 2,520-2,610, Dongguan 2,570-2,580, and Guangxi 2,580-2,620). Feed consumption is weighed down by low replenishment in battered hog breeding amid lingering African swine fever, which was reported again in Inner Mongolia and Hebei this weekend. Moreover, import cost will be reduced by sustained appreciation of the RMB recently. Besides, China and the United States have made substantial progress in their talks and both Presidents will likely meet to strike a deal in March, for which the United States has postponed its plan for tariff hikes scheduled on March 1. And Secretary of the USDA also tweeted that China would buy additional 10 million tonnes of US soybeans. In the near term, domestic soybean meal market may maintain its weak trend under the pressure of bearish factors, and buyers can just wait.
Imported rapeseed meal: The price for imported rapeseed oil remains basically stable today, of which it is 2,080-2,180 yuan/tonne in coastal areas. (Guangdong 2,080 and Fujian 2,160). Rapeseed meal stockpiles have increased slightly by 4% to 18,000 tonnes in coastal areas last week, whilst its demand from pig feeding is weak under the rampant African swine fever, which has spread to Hebei and Inner Mongolia. The market is worried about later meal marker, especially as imports for US DDGS will be open after trade thaws. Overall, rapeseed meal market will still come under pressure, and buyers can wait for the moment.
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 32,000 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. Fishmeal market has been quiet due to weak demand, and port inventory pressure has been relatively heavy since port arrivals have exceeded the shipment, but prices still keep steady. In the near term, fishmeal market will probably stay stable.
Cottonseed meal: Cottonseed meal prices today are stable with a decline of 20-50 yuan/tonne. Cottonseed meal market is influenced by the negative news that ASF has spread to Hebei and Neimenggu; 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. The respite from trade war pushed meals on DCE today to fall back with low opens. 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 6.68)
