Today (Mar. 7th), the market for meals in China is shown as follows:
Soybean meal: US soybean closed lower overnight, but meal futures post modest gains on the Dalian Commodity Exchange today. Soybean meal stays stable with some rises, but it is traded less today since most buyers have replenished in the past few days, despite some deals at low prices and negative far-month basis. Specifically, the price fluctuates by 10-20 yuan/tonne to settle at 2,430-2,510 yuan/tonne in coastal areas. (Tianjin 2,460, Shandong 2,430-2,460, Jiangsu 2,450-2,490, Dongguan 2,480-2,490, and Guangxi 2,500-2,510). Concerns over later rapeseed cargo purchases have been triggered by the news that China’s Customs has canceled registration of rapeseed exports by Canadian agribusiness Richardson International Ltd and requested to intensify inspection on Canadian rapeseed, which is bullish to meal market. Moreover, soybean meal price spread has been narrowed down against other alternative meals so that feed factories have begun to adjust their formula by adding more soybean meal. As a result, soybean meal was traded up to 340,000 tonnes yesterday, and thus it was buoyed to rebound fractionally. But the price rise is still curbed by low demand for meals since live hog number has fallen to a low point under the ASF. And the overall market will remain gloomy in the middle to long term as China and the United States are expected to strike a trade deal later this month.
Imported rapeseed meal: Prices for imported rapeseed meal steps down today, of which it is 2,130-2,220 yuan/tonne in coastal areas, down by 10 yuan/tonne. (Guangxi 2,130, down 10; Guangdong 2,120, down 10; and Fujian not offered). Rapeseed meal market is quiet and traded light recently for its sharply reduced price spread with soybean meal. And its ratio in later aquatic feed may fall below 8%, whilst its place in poultry feedstuff has been taken by sunflower meal. Meanwhile, the ASF still remains as a bear. And rapeseed meal stocks will also gradually pile up because operation rate for rapeseed crush stays at a high level for its adequate supply. Besides, Beijing may reach an agreement with Washington later this month, and there may be a thaw between China and Canada at that time, so rapeseed meal will find little upward impetus, and buyers can briefly take hand-to-mouth buying.
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 goes down by 200 yuan/tonne to 9,600-9,800 yuan/tonne for Peruvian ordinary SD with 65% protein content, and remains unchanged at 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 56,000 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 port shipment is slow amid the conventionally slack consumption and unrecovered aquaculture. But holders may get anxious to ship amid growing inventories. Overall, fishmeal market will be little changed in the near term.
Cottonseed meal: Cottonseed meal prices today are stable with a rise of 10-50 yuan/tonne. The cottonseed meal market is supported by the rise of both soybean meal and rapeseed meal as the low operation rate in cottonseed oil mills and small output of cottonseed meal amid the inspection for environmental protection during the two sessions, as well as a stricter quarantine inspection for rapeseed from Canada by China's Customs. However, the rise of cottonseed meal is limited by the narrowed price gap between cottonseed meal and soybean meal and the low pigs raising level owing to the spread of ASF.
(USD $1=CNY 6.71)
