Today (Jun. 5th), the market for meals in China is shown as follows:
Soybean meal: U.S soybean inched higher in overnight trading, but meal futures open lower to fall on the Dalian Commodity Exchange today. Spot basis bids for soybean meal steadily drop by 10-20 yuan/tonne in thin trading. Specifically, the price settles at 2,950-3,060 yuan/tonne in coastal areas. (Tianjin 3,060, Shandong 3,000-3,060, Jiangsu 3,00-3,050, Dongguan 2,950-3,030, and Guangxi 2,980-3,000). Market participants show concerns that U.S. tensions with China and Mexico will dim the demand for soybean. Besides, downstream buyers remain cautious at current high prices of soybean meal, ending up yesterday with light trading. Soybean meal prices have thus dropped fractionally today. However, weather speculations on U.S soybean still hang over the market as heavy rains have caused severe delays in spring seeding. And domestic mills are inclined to prop up prices at current low stockpiles. Before the weather speculation ends, soybean meal will have little potential for downside and will probably stay firm. Buyers can take the opportunity to replenish on the dips after the market retraces.
Imported rapeseed meal: Imported rapeseed meal drops today, of which it settles down 40-60 yuan at 2,550-2,590 yuan/tonne in coastal areas. (Guangxi 2,550; Guangdong 2,590, down 40; and Fujian 2,550, down 40). Feed mills have replaced rapeseed meal substantially with soybean meal due to a much smaller spread between them. Moreover, crush mills will maintain relatively high utilization rate due to huge supply of soybean whose import is forecast to be 8.33 mln tonnes in June and an average above 9.0 mln tonnes in July and August. Besides, the African swine fever is still spreading. Rapeseed meal market is under pressure. But rapeseed supply may get tight in July and August as its import is curbed by tensions between Beijing and Ottawa, and aquaculture has been underway, so there is also limited space for the price to fall. The price is predicted to consolidate in fluctuation, and buyers can take a hand-to-mouth basis.
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 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 rises of 50-100 yuan/tonne, as the operation rates and output are low; cottonseed price is strong; yesterday weather speculation of US soybeans drives a surge of soybean meal. 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)
