Today (Mar. 8th), the market for meals in China is shown as follows:
Soybean meal: Meal futures inch higher today on the Dalian Commodity Exchange on the back of US soybean gains last night. Soybean meal spots steadily climb higher by 10-20 yuan/tonne to attract some deals at low prices and on negative forward basis, but the total trading volume continues to fall after replenishment on the dips in the past few days. Specifically, the price settles at 2,450-2,520 yuan/tonne in coastal areas. (Tianjin 2,460, Shandong 2,450-2,490, Jiangsu 2,470-2,500, Dongguan 2,500-2,510, and Guangxi 2,510-2,520). Rapeseed futures have been the biggest gainers upon worries for its later supply after Chinese government declared to intensify inspections on Canadian rapeseed imports. And soybean meal has been traded better recently as feed plants begin to adjust their formula for its drastically reduced spread with other alternative meals. Soybean meal price is thus buoyed to post consecutive and modest rebounds. But end demand has been weighed down by the rampant ASF. Besides, Chinese importers are likely to buy more US soybeans as China and the US are expected to secure a trade deal later this month, and Chinese state-owned enterprises have already purchased at least 500,000 tonnes of US soybeans on Thursday. Growing soybean imports in the second quarter may be a hindrance to the rebound space of soybean meal price. Generally speaking, soybean meal market will likely continue its moderate rebounds with fluctuations in the near term, but will remain gloomy in the middle to long term.
Imported rapeseed meal: Prices for imported rapeseed meal jump higher today, of which it is 2,150-2,250 yuan/tonne in coastal areas, up by 10-30 yuan/tonne. (Guangxi 2,190, up 60; Guangdong 2,180, up 50; and Fujain not offered). China’s Customs has canceled Richardson's canola export registration and requested to step up inspections of Canadian canola, and several state-owned firms have broken their rapeseed contracts for May shipments; thus, rapeseed futures jump to be the biggest gainers on the Zhengzhou Commodity Exchange today. But rapeseed meal market is quiet and traded light recently as feed plants have set to adjust the ratio by adding more soybean meal for their sharply reduced price difference. Moreover, its ratio in later aquatic feed may fall below 8%, whilst its place in poultry feedstuff has already been taken by sunflower meal. The Canadian judge has postponed the extradition hearing against Huawei Meng Wanzhou to May 8, before which relationship between China and Canada will probably not get intensified. Rapeseed meal is expected to brace for modest rebounds in choppy trading in the short term, but the upward space will be limited, and its mid-to-long term trend still remains gloomy, so buyers can just take hand-to-mouth buying 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 70,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 57,000 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. Domestic fishmeal market is now supported by stable quotation abroad and price inversion at home. But holders will be gradually pressured by rising inventories at port with new arrivals from Peru, in addition to current tepid trading in domestic market. Overall, fishmeal market is predicted to go weak in the near term.
Cottonseed meal: Cottonseed meal prices today are stable with a decline of 10-50 yuan/tonne. The demand of cottonseed meal is weak as the number of live hogs in breeding is at low level due to the spread of African swine fever, and feed factories increase the proportion of soybean meal amid the price gap between soybean meal and mixed mixed meals is significantly narrowed. However, the cottonseed meal decline is curbed by the low operation rates in cottonseed oil mills, the small output of cottonseed meal, and the continuing moderate rebound of soybean meal. Short-term cottonseed meal is likely to fluctuate weakly and buyers are suggested to take a hand-to-mouth buying strategy.
(USD $1=CNY 6.72)
