Today (Jun. 4th), the market for meals in China is shown as follows:
Soybean meal: U.S. soybean closed higher in overnight trading, and meal futures expand gains after higher opens on the Dalian Commodity Exchange today. Spot soybean meal rises by 40-100 yuan/tonne with some deals at relatively low prices and weak trading at highs as buyers remain cautious. Specifically, the price settles at 2,960-3,080 yuan/tonne in coastal areas. (Tianjin 3,080, Shandong 3,030-3,080, Jiangsu 3,020-3,050, Dongguan 2,980-3,000, and Guangxi 2,960-2,980). Wet weather has resulted in a massive delay in spring soybean seeding, which was only 39% complete as of June 2nd, well behind the market estimate of 42% and the pace of 85% a year earlier. The price climb to approach 900 cents on Globex due to weather speculations. Besides, the cost of arrival at port of South American crops is high, and soybean meal has lower stockpiles; hence, meal futures post huge gains on the DCE as traders continue the arbitrage of buying meals and selling oils. Mills show strong sentiment to raise prices in view of rising futures, thus soybean meal is buoyed to suspend its corrections to make significant rises again. But downstream buyers are more and more cautious at current high prices, so that they have reduced their trading volume. Before the end of wet weather, soybean meal will maintain its overall strong trend.
Imported rapeseed meal: Imported rapeseed meal goes up sharply today, of which it settles up 80-100 yuan at 2,570-2,640 yuan/tonne in coastal areas. (Guangxi 2,570, up 80; Guangdong 2,630, up 80; and Fujian 2,590, up 10). With its import impeded by tensions between Beijing and Ottawa, rapeseed may point to tight supply later. And demand from aquaculture is also growing, in addition to trade concerns. Rapeseed meal market is thus bolstered. But feed factories have replaced rapeseed meal substantially with soybean meal, whilst mills have maintained high crush under huge soybean imports. And buyers are cautious due to the impact of the African swine fever. Overall, due to another round of weather speculations on U.S. soybean and rocky relationship of Beijing with Washington and Ottawa, rapeseed meal market will extend its strong trend in the near term.
Imported fishmeal: Imported fishmeal prices keep steady with some room for negotiation 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 99,000 tonnes, Fuzhou 22,000 tonnes, Shanghai 80,000 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 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 rises of 50 yuan/tonne as the operation rates and output are low; cottonseed price is strong; US soybean planting is only 39%, far bellow 86% of the same period last year; weather speculation of US soybeans continues; today meals on DCE surge with high open, soybean meal spots accordingly up 40-100 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. Before weather speculation of US soybeans ends, cottonseed meals are likely to go strong and buyers thereby had better maintain proper stock level upon bargain hunting instead of chasing high bids too far.
(USD $1=CNY 6.91)
