Today (Mar. 22nd), the market for meals in China is shown as follows:
Soybean meal: Soybean meal prices in coastal areas range from 2,500 to 2,580 yuan/tonne, a rise of 10-20 yuan/tonne against yesterday (Tianjin prices 2,550 yuan/tonne, Shandong 2,510-2,540 yuan/tonne, Jiangsu 2,510-2,580 yuan/tonne, Dongguan 2,510-2540 yuan/tonne, Guangxi 2,520-2,550 yuan/tonne). U.S. soybeans overnight and meals on DCE today experienced a mild rise and soybean meal spots mostly rose 10-30 yuan/tonne. Deals are made upon low prices yet not for the relatively high prices. Soybean meal inventory pressure has almost been eliminated after recent strong trading, even creating a scene of tight supply in some Northern and Shandong regions. So oil mills' support, the meal prices rise. However, the rise is curbed by the South America soybean harvest. Besides, amid the new ASF case in Chongqing, the ASF has steeply downsized the hog herd and downstream buyers will spend some time digesting their stockpiles after intensive replenishment ahead, whilst soybean arrivals will amount to 8.50 Mln tonnes in April. It is very likely that a deal will be hammered out between Beijing and Washington, and if so, the market will be pessimistic in middle to long term. But the raw material is likely to be tight before the end of April when the trade talks result may not be reached. Short-term soybean meal will remain resilient. Buyers with enough stock can maintain wait-and-see attitudes and make proper replenishment upon low prices.
Imported rapeseed meal: Imported rapeseed meal rises today, of which it settles up by 30-40 yuan/tonne at 2,170-2,220 yuan/tonne in coastal areas. (Guangxi 2,180, up 30; Guangdong 2,170, up 30; and Fujian 2,220, up 40). Today rapeseed meal on Zhengzhou Commodities Exchange rises when the market become more and more worry about the tension between China and Canada; amid the abnormal cargo unloading delay for rapeseed and crude rapeseed oil, there are only two rapeseed ships left for April and no shipment for May currently; the U.S.-China summit will be held as early as the end of April or postponed to June. However, meals demand has been poor due to ASF and rapeseed meal consumption in aquatic farming has reduced to a record low level and none in fowl feed due to greatly narrow price gap between soybean meal and rapeseed meal. The rise of rapeseed meal will be limited and buyer can stay on the sideline for the present.
Imported fishmeal: Today, imported fishmeal stays table in price and can be traded with price negotiations, with normal shipment at port. Quotation at ports: it remains at 9,600-9,800 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 74,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 62,000 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. The fishmeal demand is not much due to the cautious purchase amid the off-season of aquatic farming and the spread of African swine fever. Besides, its port inventory has amounted to 188,000 tonnes with new arrivals from Peru. But market participants tend to wait in view of price inversion at home and abroad and price hikes among holders. Overall, fishmeal market will be little changed in the near term amid the oversupply. Today, prices for imported fishmeal are a tad lower, yet prices are negotiable upon transaction and shipments at ports are general.
Cottonseed meal: Cottonseed meal prices today are stable with some prices weakly fluctuating 20-30 yuan/tonne. The meals demand is poor as the number of live hogs in breeding has fallen dramatically with the spread of African swine fever and the substitution of soybean meal from cottonseed meal increases in feed factory with the narrow price spread between soybean meal and cottonseed meal. However, the rise is curbed when the operation rate in cottonseed oil mills is low; U.S. soybeans overnight and meals on DCE today experienced a mild rise with soybean meal spots mostly up 10-30 yuan/tonne. Short-term prices is likely to fluctuate weakly and buyers are suggested to take a hand-to-mouth buying strategy.
(USD $1=CNY 6.70)
