Today (May 27th), the market for meals in China is shown as follows:
Soybean meal: U.S. soybeans rose on last Friday night upon a far slower-than-normal planting progress hindered by unrelenting rains, and meal futures expand gains after higher opens on the Dalian Commodity Exchange today. Spot soybean meal goes up by 20-40 yuan/tonne to attract some purchases at relatively low prices. Specifically, the price settles at 2,790-2,860 yuan/tonne in coastal areas. (Tianjin 2,860, Shandong 2,840-2,860, Jiangsu 2,810-2,840, Dongguan 2,810-2,820, and Guangxi 2,790-2,820). Rising premiums in South American crops have raised import cost, aquaculture has been on the way, and mills are stress-free under strong trading due to small spread between soybean meal and other meals. The spread of the African swine fever is still a curb to the demand outlook, although soybean meal has been trading better than expected in recent two months. In particular, trade concerns still lingers on the market. Meal futures post rises on the DCE today after days of losses last week, so short-term soybean meal will probably extend its strong trend.
Imported rapeseed meal: Imported rapeseed meal goes up significantly today, of which it settles up 20-30 yuan at 2,410-2,470 yuan/tonne in coastal areas. (Guangxi not offered; Guangdong 2,450, up 20; and Fujian 2,510, up 30). Rapeseed takes on a tight supply outlook as its import is facing a drag amid tensions between China and Canada, and demand from aquaculture has been growing as summer intensifies in south China; hence, rapeseed meal has gained some support. But feed factories have replaced rapeseed meal substantially with soybean meal on account of their narrowing spread, and rapeseed meal inventory thus increased by 19% to 34,000 tonnes last week. Moreover, Chinese buyers are scooping up on South American soybeans due to good crush margins, sending soybean crush to remain at a relatively high level. Therefore, there will be limited space for further rises. Buyers can a take hand-to-mouth basis.
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 22,000 tonnes, Shanghai 82,000 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 further price rises are 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 30-100 yuan/tonne, as the operation rates and output are low; cottonseed price is strong; today meals on DCE go up with high open, and soybean meal spots rise 20-40 yuan/tonne. However, the upward potential 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 good momentum for growth and buyers had better not chase bids high too far.
(USD $1=CNY 6.89)
