Today (Jun. 24th), the market for meals in China is shown as follows:
Soybean meal: U.S. soybean closed with losses as its planting was expected to propel due to the break of rainfalls in Midwest, but meal futures tick higher on low opens and fluctuate to inch up on the Dalian Commodity Exchange. Spot bids for soybean meal steadily fluctuate by 10-30 yuan/tonne with better trading at low prices. Specifically, the price settles at 2,830-2,940 yuan/tonne in coastal areas. (Tianjin 2,930, Shandong 2,880-2,940, Jiangsu 2,880-2,920, Dongguan 2,810-2,830, and Guangxi 2,830-2,880). Market participants said that a state-owned firm would turn several cargoes of U.S. soybeans, which were intended to crush. And the weather speculation on U.S. soybeans still lingers. Therefore, soybean meal market is shored up. However, the African swine fever still shadows the outlook of later demand for meal. Besides, trade talks between China and the United States will resume this week, after which two presidents will also have a meeting. All these are negative to meal prices. In a hybrid of the bull and the bear, buyers and sellers are both cautious, so soybean meal prices will largely post range-bound and frequent fluctuations in the short run. Buyers can make tentative replenishment in small batch on the dips, but remain cautious in driving up prices, while waiting for the guidance of the meeting.
Imported rapeseed meal: Imported rapeseed meal rises today, of which it settles up 10-20 yuan at 2,560-2,640 yuan/tonne in coastal areas. (Guangxi not offered; Guangdong 2,620, up 10; and Fujian 2,620, up 20). With surging demand from the aquaculture in South China and declining utilization rate in mills, rapeseed meal inventory has further fallen by 9% to 19,000 tonnes 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. But soybean crush will maintain at a high level for huge imports at port, and the African swine fever still shadows the outlook of later demand for meal, so there will be limited room for price rises. Buyers are suggested not to drive up prices excessively.
Imported fishmeal: Imported fishmeal prices decline today amid tepid shipments at port today. Quotation at ports: it is priced lower by 100 yuan at 10,100-10,200 yuan/tonne for Peruvian Fair Average Quality SD with 65% protein content, by 100 yuan at 10,400-10,600 yuan/tonne for Thai SD with 67% protein content, by 100-200 yuan at 10,800-11,100 yuan/tonne for Japanese SD with 67% protein content and by 100-200 yuan at 11,200-11,400 yuan/tonne for super steam fishmeal with 68% protein content. Stocks at port: Huangpu 102,000 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 is subdued, for holders tend to sell at favorable prices on account of high stockpiles at ports due to delicate demand under the African swine fever and the aquaculture subject to the strong rainfalls in South China. But it is also to some extent supported by stable quotations in foreign market and price inversions at home. Overall, fishmeal market will keep steady to decline slightly in the short run.
Cottonseed meal: Cottonseed meals today are stable with some weak fluctuations of 20-50 yuan/tonne as the operation rates and output are low, and 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 move sideways and buyers can take a hand-to-mouth buying strategy for the moment.
(USD $1=CNY 6.88)
