Today (Mar. 1st), the market for meals in China is shown as follows:
Soybean meal: US soybean closed with losses overnight upon a failed Trump-Kim meet and renewed worries over US-China trade talks as a representative from the USTR said that their trade issues with China could not be resolved just by substantial purchases of US products, but meal futures are triggered to rebound on the Dalian Commodity Exchange today. Soybean meal spots rebound with some deals at low prices. Specifically, the price steadily goes up by 10-20 yuan/tonne to 2,460-2,520 yuan/tonne. (Tianjin 2,510, Shandong 2,460-2,520, Jiangsu 2,450-2,520, Dongguan 2,500-2,510, and Guangxi 2,500-2,520). Rapeseed meal surges upon tightening approval of GMO rapeseed certificate, coupled by uncertainties in US-China trade talks, soybean meal is shored to rebound. But its inventory has picked up again due to the rampant ASF, so there is limited potential for rebound at present, and the overall trend remains weak. Buyers are suggested to replenish on the dips and not to chase up the price too high.
Imported rapeseed meal: Prices for imported rapeseed meal go up drastically today, of which it is 2,090-2,200 yuan/tonne in coastal areas. (Guangxi 2,150, up 80; Guangdong 2,120, up 40; and Fujian not offered). Traders cover their short positions after gains upon uncertainties and rapeseed meal futures post biggest rises, as the approval of certificates for GMO rapeseed and its by-products has been tightened and Canada is likely to announce its resolution on an extradition against Meng Wanzhou. But demand for rapeseed meal has been subject to off-season aquaculture, price slump of South American aquatic products, a drop of 20% in pig amount under lingering ASF and price spread between soybean meal and rapeseed meal to just around 340 yuan/tonne. Meanwhile, rapeseed crush will continue to rally this week. Overall, rapeseed meal spots will have limited space for rises in the short erm, and may maintain its weak trend, and buyers are suggested not to chase up the price.
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 69,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 54,000 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. Amid replenishment by some enterprises under warmer weather, fishmeal is traded better at Southern ports and sentiment of holders are also supported by stable quotations. Therefore, short-term fishmeal market will broadly keep steady.
Cottonseed meal: Cottonseed meal prices today are stable with a decline of 50 yuan/tonne. Cottonseed meal shows weak trend with fluctuations due to the poor demand as ASF continues to spread in China and the number of live hogs in breeding hits a low level. However, market becomes concern again about the U.S.-China trade talks after no agreement reached in U.S. and North Korea leaders' meeting, and rapeseed meal surged owing to news that the issuing of GM certificate will be narrowed, so meals in DCE rebounded. Moreover, with the low operation rates in cottonseed oil mills and inadequate supplies of cottonseed meal, cottonseed meal prices are likely to stop falling currently. Buyers are suggested to take a hand-to-mouth buying strategy.
(USD $1=CNY 6.69)
