Today (Jun. 12th), the market for meals in China is shown as follows:
Soybean meal: U.S. soybeans posted gains on the back of corn which climbed higher after the USDA in a monthly report slashed its yield projection, yet still kept under checked by its further raised inventories. Meal futures edge up in fluctuation on the Dalian Commodity Exchange today. Spot basis bids for soybean meal steadily fluctuate by 10-20 yuan/tonne in tepid trading. Specifically, the price settles at 2,860-2,930 yuan/tonne in coastal areas. (Tianjin 2,930, Shandong 2,900-2,920, Jiangsu 2,870-2,920, Dongguan 2,840-2,910, and Guangxi 2,830-2,860). U.S. soybean is buoyed to inch higher as hedge funds have sharply reduced their net short positions in futures markets in view of spring planting delays. Domestically, mills are propping up price for their soybean meal inventories. However, soybean supply will be out of question as mills are scooping up on lucrative South American soybeans, whilst the African swine fever is still a curb on later demand. And meal shipment is also subject to plum rain season in South China. In a hybrid of the bull and the bear, soybean meal market turns to trade sideways. The weather speculation on U.S. soybean is yet to complete as its planting will last till June 20th and the weather during the growing period also makes much difference, so it is inappropriate to go short.
Imported rapeseed meal: Imported rapeseed meal broadly stays stable today, of which it settles down 10 yuan at 2,450-2,510 yuan/tonne in coastal areas. (Guangxi 2,450, stable; Guangdong 2,510, stable; and Fujian 2,480). Feed factories have turned to soybean meal due to its small spread with rapeseed meal, and soybean crush will remain at a high level due to its huge inventory, in addition to the spreading African swine fever; hence, rapeseed meal market is under pressure. However, rapeseed supply may get tightened in July and August as its import is hindered by tensions between China and Canada. And the demand from aquaculture is rising, helping rapeseed meal stockpiles see declines in coastal areas last week. Therefore, rapeseed meal also remains resilient as mills are propping up prices. Overall, the market will still maintain range-bound, choppy trend recently, 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 Fair Average Quality 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 78,000 tonnes, Tianjin 1,000 tonnes, Dalian 18,000 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 Fair Average Quality SD fishmeal with 65% protein content and 1,610 USD/tonne for Prime SD fishmeal with 68% protein content. Chilean Fair Average Quality 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 due to steady quotations abroad and ongoing price inversions at home and abroad, in addition that holders are supported to keep quotations steady by import cost, but the price is still pressured by tepid demand and the huge inventory of 224,000 tonnes at ports. Overall, fishmeal market will probably keep steady in the short term.
Cottonseed meal: Today cottonseed meal mostly stays stable with a rise of 50 yuan/tonne for some prices as the operation rates and output are low on barley harvest; 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. Short-term cottonseed meal is likely to fluctuate in narrow range and buyers can take wait-and-see attitudes.
(USD $1=CNY 6.92)
