Today (Apr. 29th), the market for meals in China is shown as follows:
Soybean meal: U.S. soybean closed lower last Friday, but meal futures post moderate gains on the Dalian Commodity Exchange today. Spot soybean meal steadily goes up by 10-20 yuan/tonne to attract some deals at low prices. Specifically, it is at 2,480-2,530 yuan/tonne in coastal areas. (Tianjin 2,520, Shandong 2,520-2,530, Jiangsu 2,480-2,500, Dongguan 2,490-2,500, and Guangxi 2,500-2,530). Demand from aquaculture is gradually rising with temperatures intensifying in south China, and soybean meal has seen demand growth in poultry feedstuff for its five-year small spread with alternative meals, which has partially offset losses caused by the African swine fever. Furthermore, oil mills have completed their soybean meal sales to get out of pressure. In addition, domestic importers may walk away if Argentina really raises its soybean complex export tariff to 30%. However, soybean import volume will likely total 25 mln tonnes from May to July as domestic oil mills are scooping up on South American crops for abundant crush margins. And soybean meal demand may see lower demand since it will be more difficult to control the epidemic in summer. Amid a hybrid of a?bull?and a?bear, short-term soybean meal market is still choppy, so buyers can replenish appropriately on the dips instead of driving up prices.
Imported rapeseed meal: Imported rapeseed meal edges higher today, of which it settles up 10 yuan at 2,120-2,210 yuan/tonne in coastal areas. (Guangxi 2,130, up 10; Guangdong 2,130, up 10; and Fujian 2,210, up 10). Rapeseed supply may enter into tensions as its May shipments have all been canceled amid rocky relationships between Beijing and Ottawa, and demand from aquaculture is gradually picking up with temperatures intensifying in south China; hence, rapeseed meal market has gained some support. But it demand has been cut severely by its narrowed spread with soybean meal, sending it inventory to go further higher in coastal areas last week. And soybean import volume will be huge from May to August. In addition, trade talks has been going well between China and the United States. Overall, rapeseed meal market will extend its choppy, range-bound trend recently, so buyers can buy on immediate requirements.
Imported fishmeal: Imported fishmeal prices stay stable amid tepid 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, 10,900-11,100 yuan/tonne for Japanese SD with 67% protein content and 11,200-11,500 yuan/tonne for super steam fishmeal with 68% protein content. Stocks at port: Huangpu 88,000 tonnes, Fuzhou 25,000 tonnes, Shanghai 79,000 tonnes, Tianjin 1,000 tonnes, Dalian 18,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. Spot price (FOB) in foreign market keeps steady with some rises today: it is 1,410 USD/tonne for Peruvian ordinary SD fishmeal with 65% protein content and 1,660 USD/tonne for super SD fishmeal with 68% protein content, each up by 40 USD/tonne. Chilean ordinary fishmeal with 65% protein content is quoted steadily at 1,410 USD/tonne, and prime with 68% protein content higher by 90 USD/tonne at 1,640 USD/tonne. The market is a hybrid of a bull and a bear. On one hand, domestic holders have received some support from firm quotation abroad and price inversion at home and abroad; on the other, inventory pressure is intensifying amid tepid demand and new cargoes from Peru. Overall, fishmeal market will probably keep steady to consolidate in the short term.
Cottonseed meal: Cottonseed meals today are stable with some rises of 40-150 yuan/tonne, as operation rates and cottonseed meal output in cottonseed oil mills are low; today meals on DCE experience a mild rise and soybean meal spots are stable with a rise of 10-20 yuan/tonne. However, cottonseed meal market is curbed because African swine fever drags down the cottonseed meal demand; 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 6.73)
