Today (Jun. 3rd), the market for meals in China is shown as follows:
Soybean meal: U.S. soybean closed with losses last Friday on technical adjustments and a new wave of concerns over soybean sales as Trump announced that the U.S. would place a 5% tariff on all products from Mexico, its second largest soybean buyer, but meal futures fluctuate to inch higher on the Dalian Commodity Exchange today. Spot soybean meal fluctuates by 10-20 yuan/tonne in tepid trade. Specifically, the price settles at 2,910-3,000 yuan/tonne in coastal areas. (Tianjin 3,000, Shandong 2,950-2,980, Jiangsu 2,950-2,980, Dongguan 2,920-2,950, and Guangxi 2,910-2,950). Corn and soybean seeding have been trapped in a pace far slower than the average due to ceaseless rains in U.S. production areas, so the speculation on weather is still exerting its influence on the market. Besides, whilst domestic mills have seen import cost increasing from South America, their soybean meal inventories have fallen to a low level. Therefore, meal price is propped up. But the African swine fever will be a curb on later demand, and downstream buyers dare not to go too aggressively at current prices so that they have slowed down their deliveries. The price rises are thus affected. Short-term trend may maintain its choppy, narrow-range corrections, and will probably consolidate before the completion of trade disputes or weather speculations. Buyers can just replenish on demand.
Imported rapeseed meal: Imported rapeseed meal goes up today, of which it settles up 10-20 yuan at 2,480-2,560 yuan/tonne in coastal areas. (Guangxi 2,480; Guangdong 2,520, up 20; and Fujian 2,540, up 10). Tensions between China and Canada has clouded the supply outlook of rapeseed, and aquaculture has been underway, in addition to trade concerns, so rapeseed meal market is continued to get buoyed. But the market now is pressured by its own small price differential with soybean meal that has been applied in feed to a very large extent, so that the inventory to increased by 11% to 38,000 tonnes last week. In addition, domestic mills are keeping soybean crush high while buying up on South American crops for good margins. Therefore, there is also limited space for rises in the short term. Buyers can take a hand-to-mouth buying 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 98,000 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 1,610 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 steady quotations abroad 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 weak fluctuations of 20-100 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. However, some support comes from the following situations that the operation rates and output are low; cottonseed price is strong. Moreover, market restarts worrying the US soybeans demand as Trump said the United States will impose a 5% tariff on all goods coming in from Mexico, a second largest importer of US soybeans. Add that an ongoing weather speculation of US soybeans and short-term cottonseed meal is likely to fluctuate. Buyers are suggested to take a hand-to-mouth buying strategy.
(USD $1=CNY 6.91)
