Today (Feb. 22nd), the market for meals in China is shown as follows:
Soybean meal: US soybean traded higher last night upon a 4.7% drop in soybean planting area to 85 Mln acres this year by USDA estimates, and meal futures also edge up on the Dalian Commodity Exchange today. Soybean meal spots post a partial rise to attract some deals at low prices. The price rises by 10-20 yuan/tonne to 2,560-2,660 yuan/tonne in coastal areas. (Tianjin 2,600, Shandong 2,560-2,580, Jiangsu 2,560-2,630, Dongguan 2,600-2,610, and Guangxi 2,620-2,660). Buyers still remain cautious for forthcoming outcome of trade talks. Soybean meal is shored up to rebound on the back of its futures since its inventory pressure has eased due to low operation rate in February. But pig amount has fallen to a low level after its feeding is hit hard by the rampant ASF. And a state-owned enterprise in Dongguan has begun to crush its US soybean. Therefore, there is still little room for price rebounds. The chance for a reconciliation increases now that China and the US are starting to sketch out an agreement. Besides, a foreign media reported that China is expected to propose buying an additional $30 billion of U.S. agricultural imports annually, including soybean, corn and wheat. Meal prices will be weighed down if any deal is reached, so buyers can briefly take hand-to-mouth buying.
Imported rapeseed meal: The price for imported rapeseed meal stays basically stable, of which it is 2,090-2,200 yuan/tonne in coastal areas. (Guangxi 2,090; Guangdong 2,120, stable; and Fuajin 2,200, stable). Chinese importers have continued to purchase Brazilian soybean for April and May deliveries due to its good profits. And demand from hog feeding is weak for pig amount has fallen to a low level under the contagious ASF. Buyers thus remain cautious in purchasing upon bearish sentiment for later meal markets. Besides, the chance for a reconciliation increases now that China and the US are starting to sketch out an agreement. And a foreign media reported that China is expected to propose buying an additional $30 billion of U.S. agricultural imports annually, including soybean, corn and wheat. China will eliminate its additional tariffs on US soybean imports if any deal is reached, and then it will also open its US DDGS imports. Rapeseed meal prices will be weighed down at that time, and buyers can just wait on the sidelines for the outcome of US-China trade talks.
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 31,000 tonnes, Shanghai 52,000 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 with the arrivals of Peruvian new cargoes, holders are propping up to make the offer remain stable. In the near term, fishmeal market will probably stay stable.
Cottonseed meal: Cottonseed meal prices today revise early declines to a steady level. US soybeans overnight and meals on DCE today rise slightly with some soybean meal spots rising 10-20 yuan/tonne. The market of cottonseed meal is stable due to the low operation rates in cottonseed oil mills and inadequate supplies of cottonseed meal. However, the market is under pressure as the number of live hogs in breeding is at a low level owing to the spread of ASF; the feed demand for Feb. is likely to decline 20% month on month; if agreements are reached in U.S.-China talks today, China will eliminate the additional tariffs on US soybeans and DDGS. Buyers are suggested to take a hand-to-mouth buying strategy.
(USD $1=CNY 6.72)
