Today (Feb. 20th), the market for meals in China is shown as follows:
Soybean meal: US soybean futures overnight touched the lowest point in four weeks after investors liquidated their long positions. Worries about global pig feeding will be triggered since the first African swine fever has been confirmed in Vietnam. Meal futures on the Dalian Commodity Exchange sink drastically after low opens today. And soybean meal spots also fall in ordinary trading. The price goes down by 30-50 yuan from yesterday to settle at 2,600-2,680 yuan/tonne in coastal areas. (Tianjin 2,620, Shandong 2,600-2,630, Jiangsu 2,600-2,680, Dongguan 2,600-2,620, and Guangxi 2,620-2,640). No.1 central document noted that China will continue to diversify its import channels for agricultural commodities and to enlarge soybean planting areas. Chinese importers have purchased 20 cargoes of Brazilian soybean last week due to its satisfactory crush margins. But demand for soybean meal from hog breeding is weak amid the African swine fever, especially after several food enterprises have been found to have used infective pork in their products. And operation rate for soybean will be resumed to a high level, although inventory pressure of soybean meal has basically eased. Optimism is growing for a trade deal as China and the United States are to hold their 7th round of talks in Washington on Thursday and Friday. Domestic market will definitely fall bearish once a deal is reached, so buyers can just wait on the sidelines.
Imported rapeseed meal: The price for imported rapeseed meal steps down today, of which it is 2,080-2,190 yuan/tonne in coastal areas, down by 20-30 yuan/tonne. (Guangxi 2,080, down 20; Guangdong 2,110, down 40; and Fujian 2,190, down 40). Demand from aquaculture remains slack currently, and outbreaks of the African swine fever have spread into Beihai, Guangxi Province with two cases uncovered just after Sanquan dumplings were confirmed to report positive results for this virus. Besides, onshore RMB has topped 6.73 against USD to reach its month high. And optimism grows about a trade deal between China and the United States as the two countries are to have a 7th and also the final round of talks at high levels on Thursday and Friday ahead of the deadline of March 2. The market remains cautious with bearish sentiment toward later meal market, and rapeseed meal market is thus dragged down. Overall, short-term rapeseed meal market will probably post narrow fluctuations to go weak, and buyers can just take a wait and see stance.
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 67,000 tonnes, Fuzhou 31,000 tonnes, Shanghai 51,000 tonnes, Tianjin 1,000 tonnes, Dalian 13,000 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 light amid slack demand with many enterprises depending on their storage so that port inventory pressure has been relatively heavy. But with the arrivals of Peruvian new cargoes, holders are propping up to make the offer remain firm. In the near term, fishmeal market will be little changed.
Cottonseed meal: Cottonseed meal prices today are stable. For the closing of long positions US soybeans overnight was at the lowest among the recent four weeks, and today meals on DCE greatly fall back amid low opens, while soybean meal spots see a decline of 30-50 yuan/tonne amid stagnant turnover. Cottonseed meal market is also affected by the optimistic expectation that after the 7th round of China-U.S. trade talk held tomorrow and the next day in Washington, some final agreements would be reached. However, the downward potential are restricted by the low operation rates in cottonseed oil mills and the inadequate supplies of cottonseed meal. But the cottonseed meal may be dragged down if soybean meal keep falling. Buyers are suggested to maintain wait-and-see attitudes until the end of Washington US-China consultations.
(USD $1=CNY 6.72)
