Today (Jun. 21st), the market for meals in China is shown as follows:
Soybean meal: U.S. soybean futures posted huge gains as rains returned. Meal futures rebound on the Dalian Commodity Exchange today, but they gradually narrow down their rises after opening sharply higher in early trade. Spot bids for soybean meal steadily edge up by 10-20 yuan/tonne, attracting some purchase at low prices. Specifically, the price settles at 2,830-2,940 yuan/tonne in coastal areas. (Tianjin 2,940, Shandong 2,890-2,910, Jiangsu 2,860-2,910, Dongguan 2,850-2,870, and Guangxi 2,830-2,860). China’s Ministry of Commerce said the heads of the two trade teams would communicate according to instructions passed down from the two presidents, and South China Morning Post said in a report that the communication would be carried out in Osaka next Tuesday. In addition, the utilization rate for soybean crush will pick up with huge volume arriving at port in the third quarter, whilst soybean meal has been in light demand subject to the African swine fever. However, mills are under no pressure in terms of inventory, and main production states of U.S. soybean have again suffered from excessive rains. Therefore, soybean meal prices are unlikely to slump before an agreement reached between China and the United States, but the price rises are also restricted as the bull remain cautious in going long on account of the resumed trade talks. Overall, short-term trend will post frequent yet narrow fluctuations on the back of futures. Buyers can buy on immediate requirements.
Imported rapeseed meal: Imported rapeseed meal rises today, of which it settles up 40-50 yuan at 2,560-2,610 yuan/tonne in coastal areas. (Guangxi not offered; Guangdong 2,610, up 50; and Fujian 2,560, up 50). With growing demand from aquaculture in South China and declining utilization rate in rapeseed crush, rapeseed meal inventory keeps decreasing in coastal areas. Besides, it is unlikely that China and Canada will fix their mutual relationship immediately, so rapeseed will point to a tight supply outlook in the second half of July. Therefore, rapeseed meal market will continue to receive some support. However, the small price difference between soybean meal and rapeseed meal has made the former much more attractive to feed mills. Moreover, soybean crush still stays at a high level amid huge volume arriving at ports. And the African swine fever is still a curb on later demand. All these will continue to weigh down the price rises. Buyers are suggested not to chase after price hikes excessively.
Imported fishmeal: Imported fishmeal prices are unchanged with some room for negotiation amid tepid shipments at port today. Quotation at ports: it is priced steadily at 10,200-10,300 yuan/tonne for Peruvian Fair Average Quality SD with 65% protein content, 10,500-10,600 yuan/tonne for Thai SD with 67% protein content, 10,900-11,100 yuan/tonne for Japanese SD with 67% protein content and 11,300-11,500 yuan/tonne for super steam fishmeal with 68% protein content. Stocks at port: Huangpu 101,000 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 stays stable today: it is 1,410 USD/tonne for Peruvian Fair Average Quality SD fishmeal with 65% protein content and 1,580 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 receives some support from flat quotation in foreign market, but it is also restricted by high stockpiles and tepid shipments at ports amid delicate demand due to the slow start of aquaculture subject to heavy rainfalls in South China and the ongoing African swine fever. Overall, fishmeal market will keep steady in the short run.
Cottonseed meal: Cottonseed meal today stays stable with low trading volume as the operation rates and output are low; cottonseed price is strong; today meals on DCE rebound on rainfall and spot soybean meal is stable with a rise of 10-20 yuan/tonne. 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 move sideways and buyers can take a hand-to-mouth buying strategy for the moment.
(USD $1=CNY 6.87)
