Today (Feb. 18th), the market for meals in China is shown as follows:
Soybean meal: US soybean futures ticked higher last Friday, but meals on the Dalian Commodity Exchange edge down in response to positive results for African swine fever in the processed pork by several well-known food enterprises. Soybean meal spots slip amid light trade. The price falls by 10-30 yuan/tonne to 2,650-2,700 yuan/tonne in coastal areas. (Tianjin 2,670, Shandong 2,640-2,690, Jiangsu 2,650-2,700, Dongguan 2,650-2,680, and Guangxi 2,670-2,700). The price decline of soybean meal is limited by its basically eased inventory pressure, low operation rate and few arrivals of soybean in recent two months. But its demand still remains as a concern due to sharp drops in live pig amount. Meanwhile, the market is upbeat for China and the United States to finalize a trade deal during their trade talks in Washington next week. If the two countries live up to that expectation, anti-dumping and anti-subsidy tariff on DDGS will likely be eliminated together with that on soybean. In the short term, soybean meal will extend its weak trend, and buyers can continue to stay on the sidelines.
Imported rapeseed meal: The price for imported rapeseed meal steps down today, of which it is 2,100-2,230 yuan/tonne in coastal areas, down by 10-20 yuan/tonne. (Guangxi 2,100, down 10; Guangdong 2,150, down 20; and Fujian 2,230, down 10). Besides slack demand in aquaculture, the African swine fever also brings a hard hit to hog feeding, especially after it was tested positive in processed pork produced by several well-known food enterprises last Friday. The market turns more negative for later meal demand, so rapeseed meal market has come under pressure. But the inventory has fallen by 34% to 17,000 tonnes in coastal areas due to low operation rate. In addition, new rapeseed cargoes are now allowed to be processed after discharging amid tensions between China and Canada, under which rapeseed supply may get tight on the back of soybean. Therefore, there is limited space for price declines. In the short term, rapeseed meal market will likely post narrow fluctuations, and buyers can take hand-to-mouth buying.
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 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. Domestic fishmeal market remains quiet amid slack demand, but its quotation keeps firm as holders tend to prop up prices for new arrivals from Peru. In the near term, the market will probably see few changes.
Cottonseed meal: Cottonseed meal prices today stop rising and stay stable for the time being. The cottonseed meal market is affected by the news that ASF virus were detected in pig products from some famous food companies, with meals on DCE today slightly falling and soybean meal spots declining 10-30 yuan/tonne, and by the optimistic expectation that China-U.S. will reach agreements in the new round of consultations in Washington this week. However, the prices will be supported by mills' mindset for higher offers due to the low operation rate in cottonseed oil mills and inadequate supply cottonseed meal. It's expected that currently the cottonseed meal prices in the short run are likely to move at a narrow range. Buyers are suggested to maintain wait-and-see attitudes until the end of Washington US-China consultations.
(USD $1=CNY 6.77)
