Today (Jun. 17th), the market for meals in China is shown as follows:
Soybean meal: U.S. soybean futures closed with further rises, buoyed by the weather forecast for more rains in Midwest, and meal futures open higher to see more gains on the Dalian Commodity Exchange. Spot bids for soybean meal steadily go up by 30-60 yuan/tonne in tepid trading Specifically, the price settles at 2,900-3,010 yuan/tonne in coastal areas. (Tianjin 3,000, Shandong 2,980-3,010, Jiangsu 2,970-3,010, Dongguan 2,930-2,990, and Guangxi 2,900-2,960). U.S. soybeans stay relatively strong on worries about yield prospects for the delayed crop by the wet weather, and domestic mills have kept small stockpiles; hence, meal prices get buoyed. But domestic buyers have completed large orders for lucrative South American crops. In the meantime, soybean meal market is subdued as downstream buyers remain cautious at current high prices after a wave of replenishment. All these factors may make joint efforts to curb the upward impetus of soybean meal prices, but the prices will not easily drop due to unfavorable weather conditions for U.S soybeans. Buyers are suggested to remain cautious as a detente is expected at a G20 summit at the end of this month.
Imported rapeseed meal: Imported rapeseed meal jump higher today, of which it settles up 50-70 yuan at 2,530-2,650 yuan/tonne in coastal areas. (Guangxi 2,530; Guangdong 2,650, up 70; and Fujian 2,600, up 50). The inventory of rapeseed meal has dropped by 37% to 21,000 tonnes in coastal areas last week due to the demand from aquaculture in South China and a decline in rapeseed crush. In addition, imported rapeseed supply is expected to get tightened from July since its import has been interrupted by tensions between China and Canada. Therefore, rapeseed meal will continue to get support. But its price rises will still be curbed by the African swine fever and high soybean crush under huge supply. Buyers are suggested not to chase up prices.
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 23,000 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. On one hand, domestic fishmeal remains positive due to stable quotations abroad and price inversions at home and abroad; on the other, it is also kept under check subdued demand, tepid shipments at ports and slow inventory (224,000 tonnes at ports so far) consumption. Overall, fishmeal market will probably keep steady in the short term.
Cottonseed meal: Today cottonseed meal mostly stays stable with a drop of 50 yuan/tonne for some prices when the spread of ASF greatly impacts 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. However, some support comes from the following situations that the operation rates and output are low on barley harvest and poor crush margin; cottonseed price is strong; meals on DCE today go up and spot soybean meal rises 30-60 yuan/tonne on more precipitation forecast in American Midwest. Short-term cottonseed meal is likely to fluctuate greatly and buyers can take a hand-to-mouth buying strategy for the moment.
(USD $1=CNY 6.92)
