Today (Jun. 6th), the market for meals in China is shown as follows:
Soybean meal: U.S. soybean closed sharply lower overnight as the weather was forecast to be favorable to propel the seeding progress, and meal futures also open lower to slump on the Dalian Commodity Exchange. Spot basis bids for soybean meal follow to drop by 30-80 yuan/tonne in thin trading, and only those with leading losses still attract some replenishment. Specifically, the price settles at 2,880-3,000 yuan/tonne in coastal areas. (Tianjin 3,000, Shandong 2,900-3,020, Jiangsu 2,920-2,990, Dongguan 2,870-2,990, and Guangxi 2,900-2,930). Chinese buyers has been scooping up on lucrative South American crops with 9 cargoes from Brazil for the first two days this week; hence, there will be no supply worries in the next three months, and mills will maintain high utilization rate. Besides, downstream buyers remain cautious at current high prices of soybean meal, ending up these few days with light trading. Therefore, soybean meal prices follow futures to fall today. However, soybean meal will enter into peak demand season with the start of the aquaculture in southern provinces. And domestic mills are inclined to prop up prices at current low stockpiles, so spot losses are broadly smaller than futures today. The weather speculation is yet to finish and if there comes the bad weather, soybean meal will go upward again. Buyers can wait to replenish on the dips.
Imported rapeseed meal: Imported rapeseed meal drops today, of which it settles down 30-40 yuan at 2,490-2,550 yuan/tonne in coastal areas. (Guangxi 2,500; Guangdong 2,550, down 40; and Fujian 2,500, down 40). Feed mills have replaced rapeseed meal substantially with soybean meal due to a much smaller spread between them, coupled with the spreading African swine fever. And Chinese buyers has been scooping up on lucrative South American crops with 9 cargoes from Brazil for the first two days this week, so soybean crush will remain at high levels on its adequate supply. Rapeseed meal market is thus 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 rapeseed meal price will have little space to fall and will probably maintain its strong trend. Buyers can wait for steady declines to replenish on the dips.
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 79,000 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 the price is still curbed by high stockpiles at ports and weak demand from aquaculture delayed by strong rains. Overall, fishmeal market will probably keep steady in the short term.
Cottonseed meal: Today cottonseed meal stays stable as the operation rates and output decline amid barley harvest and the Dragon Boat Festival; cottonseed price is strong. 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. Besides, as improved weather condition is favorable for US soybeans sowing, meals on DCE today open low and greatly fall back, following a decline of 30-80 yuan/tonne for spot soybean meal. Short-term cottonseed meal is likely to move sideways. Buyers can just wait on the sidelines.
(USD $1=CNY 6.91)
