Today (May 29th), the market for meals in China is shown as follows:
Soybean meal: U.S. soybean closed with huge gains in overnight trading on constant planting delays, and meal futures follow to surge and hit limit-up at noon on the Dalian Commodity Exchange today. Spot soybean meal sees a 70-120 yuan/tonne higher with small trading volume and some replenishment at relatively low prices. Specifically, the price settles at 2,930-3,000 yuan/tonne in coastal areas. (Tianjin 3,000, Shandong 2,990-3,000, Jiangsu 2,950-3,000, Dongguan 2,930-3,000, and Guangxi 2,930-2,970). Wet weather continues in U.S production zones, so that soybean planting has been abnormally slow with only 29% completed (19% last week), far slower than 74% last year and triggering some concerns over later production. Besides, import cost has been raised by rising premiums of South American crops, and aquaculture has already been underway. Meanwhile, soybean meal itself has been trading well due to its small spread with mixed meals, for which its inventory has declined by 46% from a year earlier. Soybean meal price is thus buoyed to continue its rises. Despite the ongoing swine epidemic, traders have locked their eyes onto U.S. soybeans whose weather speculation has been fueled. Amid a boom in foreign market, soybean meal will continue to rush to further high. Buyers can try to take rolling operations under safety stockpiles.
Imported rapeseed meal: Imported rapeseed meal goes up today, of which it settles up 80-100 yuan at 2,540-2,610 yuan/tonne in coastal areas. (Guangxi 2,620; Guangdong 2,560, up 80; and Fujian 2,620, up 100). Rapeseed may post a tight supply outlook due to its hindered import by tensions between Beijing and Ottawa, coupled with growing demand from aquaculture and trader concerns, so rapeseed meal market is shored up. But the market has seen not much demand as it has been supplanted by soybean meal due to their enlarging spread. Despite all the above, The speculation on U.S. soybean weather is sharply intensifying, and U.S. President Donald Trump said that he was not ready for a deal with China. Therefore, short-term rapeseed meal price will probably extend its upward trend.
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 81,000 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 ongoing price inversions at home and abroad, 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 100 yuan/tonne as the operation rates and output are low; cottonseed price is strong; today meals on DCE surge and rise the daily limit in the afternoon, soybean meal spots up 70-120 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. But short-term cottonseed oil is likely to follow the surge of soybean meal, which is driven up by US soybean speculation on weather due to a concern about its crop when a continuing rainfall greatly slows down US soybeans sowing, only 29% now compared to 74% the equivalent period last year. Buyers thereby had better maintain proper stock level upon bargain hunting instead of chasing high bids too far.
(USD $1=CNY 6.91)
