Today (Mar. 14th), the market for meals in China is shown as follows:
Soybean meal: US soybean went up overnight, and meal futures gradually expand gains on the Dalian Commodity Exchange today as US President Donald Trump said that he was in no rush to complete a trade pact with China, and traders began to close their positions after profit taking on buying oils and selling meals. Soybean meal spots post a price hike of 30-50 yuan/tonne to attract fewer deals, in spite of some trading upon low basis. Specifically, the price is pegged at 2,520-2,590 yuan/tonne in coastal areas. (Tianjin 2,570, Shandong 2,520-2,560, Jiangsu 2,540-2,590, Dongguan 2,520-2,590, and Guangxi 2,550-2,600). Soybean meal has enjoyed growing demand thanks to its unusually small spread with alternative meals, and downstream inventories were quite low amid bearish sentiment previously; thus, soybean meal has been trading well since last week to ease its inventory pressure, and its price has also been bracing for rebounds. But due to severely crippled demand from hog feeding under the ASF and no detail from US-China trade talks, there will be limited upward space for soybean meal, so buyers are suggested not to chase up prices too high.
Imported rapeseed meal: Prices for imported rapeseed meal rise today, of which it is 2,130-2,180 yuan/tonne in coastal areas, up by 10-20 yuan/tonne. (Guangxi 2,130, up 10; Guangdong 2,120, up 10; and Fujian 2,170, stable). Rapeseed meal remains only 5-8% left in aquatic feed due to its fresh-low spread with soybean meal, and has been totally weeded out by some large factories. Moreover, its place in poultry feedstuff has already been supplanted by sunflower meal. Meanwhile, the ASF is still not under control. From demand side, rapeseed meal will have limited rebound space and may enter into correction territory, so buyers can just buy on demand for the moment.
Imported fishmeal: Today, imported fishmeal stays table with some declines 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 71,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 58,000 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 is now bolstered by firm quotation abroad and price inversion at home, but its demand remains delicate as aquaculture is still detained by unfavorable weather conditions. Moreover, holders have become more willing to sell in view of supply gluts under growing stockpiles with new arrivals from Peru. Overall, fishmeal market will adjust to decline slightly in the near term.
Cottonseed meal: Today cottonseed meal mostly stays stable. The market is curbed by the the poor demand as the African swine fever leads the number of live hogs in breeding to a low level and the substitution of soybean meal from mixed meals is increasing due to the narrowed price spread between soybean meal and mixed meals. However, soybean meal prices become stable when the operation rates in cottonseed oil mills is low and some consecutive turnovers boost soybean meal spots to rebound 30-50 yuan/tonne. But the market stays weak and short-term prices are likely to move sideways with weak tendency. Buyers are suggested to maintain wait-and-see attitudes.
(USD $1=CNY 6.71)
