Today (Jun. 14th), the market for meals in China is shown as follows:
Soybean meal: U.S. soybean futures jumped higher for a second consecutive session on concerns over lower-than-forecast planting acreage and damage to late crops by relentless rains in Midwest, and meal futures edge down in fluctuation on the Dalian Commodity Exchange today due to slow shipments. Spot bids for soybean meal steadily go down by 10-20 yuan/tonne with some trading at low prices. Specifically, the price settles at 2,850-2,950 yuan/tonne in coastal areas. (Tianjin 2,930, Shandong 2,930-2,960, Jiangsu 2,900-2,950, Dongguan 2,880-2,890, and Guangxi 2,850-2,900). Domestic mills have slowed down their pace in purchasing South American soybeans with 7-10 cargoes of Brazilian soybeans traded until this Thursday. But soybean supply will be loose in the next two to three months so that mills will maintain high utilization rate. In the meantime, the African swine fever will remain as a curb on later demand since it has been cutting down breeding hog amount, and soybean meal has already been in slow trading as downstream buyers are digesting their inventories, making its price to fall slightly today. The price is prevented from sharp declines by concerns over weather conditions, but it may be forced to fall as the bull book profit taking with the coming of the G20 summit late this month. Buyers can wait for steady falls to make proper replenishment on the dips.
Imported rapeseed meal: Imported rapeseed meal steadily inches lower today, of which it settles down 10 yuan partially at 2,480-2,580 yuan/tonne in coastal areas. (Guangxi 2,480; Guangdong 2,600; and Fujian 2,550, down 10). Better trading has been recovered in rapeseed meal market with the start of the aquaculture, while rapeseed supply may get tightened as its import is still blocked by tensions between Beijing and Ottawa. Rapeseed meal market is thus buoyed. But due to huge soybean imports arriving at ports and its auction from next week, mills will still remain high utilization rate. And buyers still remain cautious due to the impact of the African swine fever. Hence, there will be limited space for price rises, and buyers are suggested not to drive up prices excessively.
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 100,000 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, but the price is still pressured by slow inventory consumption under 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: Cottonseed meals today are stable with some rises of 50 yuan/tonne as the operation rates and output are low on barley harvest; cottonseed price is strong. Besides, weather speculation of US soybeans restarts with a two-consecutive-day rise, and short-term soybean meal is strong, which is favourable for cottonseed meal. However, the upward potential is curbed because ASF drags down 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. Short-term cottonseed meal is likely to fluctuate greatly. Buyers therefore had better not chase bids high.
(USD $1=CNY 6.92)
