Today (May 31st), the market for meals in China is shown as follows:
Soybean meal: U.S. soybean posted gains for a fourth consecutive session in overnight trading on planting delays, but meal futures continue to drop on the Dalian Commodity Exchange today. Spot soybean meal steadily fluctuates by 10-40 yuan/tonne in tepid trading. Specifically, the price settles at 2900-2980 yuan/tonne in coastal areas. (Tianjin 3,000, Shandong 2,940-3,000, Jiangsu 2,960-2,980, Dongguan 2,900-2,960, and Guangxi 2,910-2,960). Buyers tend to withdraw from the market in view of high utilization rate for soybean crush and the ongoing African swine fever, so soybean meal has seen fewer deals after hitting above 2,900 yuan/tonne amid slower shipment. Therefore, the price continues to fluctuate to adjust today. But due to an outlook of a sharp decline in harvest yield and acreage under a far slower-than-normal planting pace, the speculation on U.S soybean will over hang the market. Besides, trade disputes may get some reprieve only after the meeting between two Presidents at a G20 summit in late June. Moreover, soybean meal will soon enter into peak season with the start of the aquaculture. Overall, soybean meal will see further rises, and its short-term trend may post rallies after this round of corrections. Buyers can wait for steady falls to make proper replenishment.
Imported rapeseed meal: Imported rapeseed meal steadily inches lower today, of which it settles down 10 yuan partially at 2,470-2,530 yuan/tonne in coastal areas. (Guangxi 2,490; Guangdong 2,530, stable; and Fujian 2,530). Rapeseed meal market now is pressured by its own small price differential with soybean meal which has been applied in feed to a very large extend. In addition, the swine epidemic is still spreading, whilst mills are keeping high utilization rate on account of huge soybean stockpiles. But rapeseed import is confronted with tensions between China and Canada. And farmers have been planting their soybean at a pace far slower than previous years due to heavy rains in the United States, which may lead to a sharp decline in harvest yield and has triggered speculations on the weather. Besides, there is still no sign of a thaw between China and the United States in terms of trade disputes. Hence, rapeseed meal market will have little downward space, and will probably consolidate in fluctuation. Buyers can take a 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 97,000 tonnes, Fuzhou 22,000 tonnes, Shanghai 81,000 tonnes, Tianjin 1,000 tonnes, Dalian 16,000 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 1,610 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 fishmeal market remains positive, which can be contributed to growing import cost under a weaker yuan and ongoing price inversions at home and abroad. But its 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 drops of 20 yuan/tonne when the spread of ASF greatly impacts demand for cottonseed meal; 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; the trading of new order for cottonseed meal is slow; prices from some mills move sideways. However, some support comes from the following situations that the operation rates and output are low; cottonseed price is strong. Short-term cottonseed meal is likely to strongly fluctuate as US soybean speculation on weather will continue for the time being and there's no relief in sight for US-China trade wars.
(USD $1=CNY 6.91)
