Today (May 23rd), the market for meals in China is shown as follows:
Soybean meal: U.S soybeans inched higher last night and meal futures also edge up on the Dalian Commodity Exchange today. Spot soybean meal steadily increases by 10-20 yuan/tonne in light trading. Specifically, the price settles at 2,780-2,840 yuan/tonne in coastal areas. (Tianjin 2,860, Shandong 2,830-2,840, Jiangsu 2,780-2,810, Dongguan 2,800-2,810, and Guangxi 2,780-2,810). Import cost has been raised by trade concerns, and mills are stress-free in inventory amid good trading due to small spread between soybean meal and other meals. Before the reduction of trade concerns, soybean meal will extend its strong trend. But mills are active in crush for healthy margins, sending soybean crush to a very high level in recent weeks. Meanwhile, the African swine fever was reported again in Sichuan and Ningxia, and breeding pig number has already suffered a big cut in other epidemic areas, which will affect later meal demand. Soybean meal has narrowed down its price rises in recent two days, and buyers with enough stockpiles are suggested not to chase after excessive rises to avoid the risk of short-term corrections.
Imported rapeseed meal: Imported rapeseed meal steadily goes up today, of which it settles up 10-20 yuan partially at 2,380-2,460 yuan/tonne in coastal areas. (Guangxi 2,380; Guangdong 2,450, up 10; and Fujian 2,460, up 20). Rapeseed takes on a tight supply outlook in July and August as its import is facing a drag amid tensions between China and Canada, and rapeseed meal inventory has dropped with rising demand from the aquaculture. Therefore, rapeseed meal market has received some support. But rapeseed meal has been fiercely replaced due to its narrowed spread with soybean meal, and soybean crush has remained stubbornly high due to good margins of South American crops. Rapeseed meal futures have narrowed down gains in afternoon trading, so there will be limited room for further rises for rapeseed meal. Buyers are suggested not to chase after excessive rises to avoid the risk of short-term corrections.
Imported fishmeal: Imported fishmeal prices keep steady amid tepid shipments at port today. Quotation at ports: it is priced steadily at 10,400-10,500 yuan/tonne for Peruvian ordinary SD with 65% protein content, 10,700-10,800 yuan/tonne for Thai SD with 67% protein content, 11,100-11,200 yuan/tonne for Japanese SD with 67% protein content and 11,400-11,600 yuan/tonne for super steam fishmeal with 68% protein content. Stocks at port: Huangpu 96,000 tonnes, Fuzhou 23,000 tonnes, Shanghai 83,000 tonnes, Tianjin 1,000 tonnes, Dalian 17,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. Spot price (FOB) in foreign market keeps steady 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. Chilean ordinary fishmeal with 65% protein content is quoted steadily at 1,410 USD/tonne, and prime with 68% protein content at 1,640 USD/tonne. Domestic holders are encouraged to prop up prices by stable foreign quotations and growing import cost, which is positive to domestic fishmeal market. But the market is still pressured by weak demand and high stockpiles. Overall, fishmeal market will probably keep steady to consolidate in the short term.
Cottonseed meal: Cottonseed meals today are stable with some rises of 50-70 yuan/tonne, as the operation rates and output are low; cottonseed price is strong; today meals on DCE have a uptick, and soybean meal spots are steady with a rise of 10-20 yuan/tonne. However, cottonseed meal market is curbed because ASF drags down demand for cottonseed meal. Moreover, 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 and the trading of new order for cottonseed meal is slow. Short-term prices are likely to stay stable with some strong fluctuations and buyers had better not chase bids high too far.
(USD $1=CNY 6.92)
