Today (Apr. 22nd), the market for meals in China is shown as follows:
Soybean meal: Today, U.S. soybean ticks higher as investors resumed trading and meal futures are in choppy, range-bound trading on the Dalian Commodity Exchange. Spot soybean meal steadily fluctuates by 10-20 yuan/tonne in tepid trade. The price is 2,520-2,540 yuan/tonne in coastal areas. (Tianjin 2,550, Shandong 2,520-2,540, Jiangsu 2,500-2,530, Dongguan 2,510-2,520, and Guangxi 2,510-2,530). Soybean meal market is now checked by a series of factors. China may resume DDGS imports from the United States amid optimism in trade talks. And more and more soybean cargoes will arrive at port since domestic oil mills are buying up on profitable crop from South America for declining import costs upon big discounts. But soybean meal has been reporting robust trading volume for its better-than-expected demand brought by its narrow spread with alternative meals, so there is little space for price declines. Overall, the market may extend its choppy and narrow trend in the short term as traders are waiting for fresh news from trade talks.
Imported rapeseed meal: Imported rapeseed meal are mixed steadily today, of which it settles ups and downs by 10-20 yuan at 2,100-2,230 yuan/tonne in coastal areas. (Guangxi 2,140, down 10; Guangdong 2,160; and Fujian 2,220). Rapeseed meal market is buoyed by tightened rapeseed supply later now that importers have canceled their shipments after May amid tensions between Beijing and Ottawa. But its demand is severely cut by its enlarging spread with soybean meal, sending its inventories to rise by 34% to 41,000 tonnes in coastal areas last week. Meanwhile, soybean imports will growing markedly in the second quarter, and China may resume DDGS imports from the United States amid smooth trade talks. Therefore, rapeseed meal price will have little upward potential, and may its choppy, range-bound trend. Buyers can take a hand-to-mouth tactic.
Imported fishmeal: Imported fishmeal is trading steadily with some declines and limited negotiating space amid unhurried shipments at port today. Quotation at ports: it is priced steadily at 10,200-10,300 yuan/tonne for Peruvian ordinary SD with 65% protein content and 10,500 yuan/tonne for Thai SD with 67% protein content, and it goes down 100 yuan to 10,900-11,000 yuan/tonne for Japanese SD with 67% protein content and down 200 yuan to 11,200 yuan/tonne for super steam fishmeal with 68% protein content. Stocks at port: Huangpu 83,000 tonnes, Fuzhou 26,000 tonnes, Shanghai 73,000 tonnes, Tianjin 1,000 tonnes, Dalian 15,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. Spot price (FOB) in foreign market declines today: it is unchanged at 1,370 USD/tonne for Peruvian ordinary SD fishmeal with 65% protein content and 1,620 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 turns bearish upon quiet demand from aquaculture that has just got started and ongoing African swine fever, in addition to high stockpiles with new cargoes from Peru. But there is support from firm quotation abroad and price inversion at home and abroad. Therefore, domestic fishemal prices will broadly keep steady in the near term.
Cottonseed meal: Cottonseed meals today are stable with some rises of 10-30 yuan/tonne, as operation rates and cottonseed meal output in cottonseed oil mills are low; today meals on DCE fluctuate in narrow range and soybean meal spots are stable with fluctuations of 10-20 yuan/tonne. However, the upward potential of cottonseed meal is curbed because the number of live hogs has fallen to a low level with an epidemic of African swine fever; and as the price spread between soybean meal and cottonseed meal is too narrow, the substitution of soybean meal from cottonseed meal happens in feed factory. Short-term cottonseed meal is likely to stay stable with fluctuations. Buyers are suggested to take a hand-to-mouth buying strategy.
(USD $1=CNY 6.71)
