Today (Jul. 12th), the market for meals in China is shown as follows:
Soybean meal: U.S. soybean extended gains on the bullish report by the USDA, and meal futures follow to climb higher on the Dalian Commodity Exchange today. Spot bids for soybean meal go up by 10-30 yuan/tonne to attract some low-level purchases. Specifically, the price settles at 2,720-2,780 yuan/tonne in coastal areas. (Tianjin 2,780, Shandong 2,740-2,770, Jiangsu 2,740-2,760, Dongguan 2,720-2,740, and Guangxi 2,720-2,750). Soybean meal market is buoyed to rebound for consecutive days because downstream buyers have begun to replenish for their low stockpiles now that the price has fallen to their psychological level. But world supply and demand of soybean is still loose. While oybean import is estimated at 29 mln tonnes in the third quarter, meal demand is still depressed by the contagious African swine fever and unprofitable broiler farming. Mills are now bothered by swelling soybean meal inventories, so the price rebound will be restricted. Buyers must be alert to frequent fluctuations, and be cautious in chasing up prices.
Imported rapeseed meal: Imported rapeseed meal steadily edges lower today, of which it settles down 10 yuan partially at 2,380-2,530 yuan/tonne in coastal areas. (Guangxi not offered; Guangdong 2,440, down 10; and Fujian 2,380, stable). While the demand for meals is dismal due to the African swine fever, rapeseed meal itself is further dragged down by its small price spread with soybean meal. Moreover, soybean import will be huge later, so soybean meal prices will have little upward impetus. Therefore, short-term rapeseed meal market is depressed to snap off rises to fluctuate. But rapeseed supply may get tightened later this month since it is difficult for China and Canada to solve their problems in a short time, so there will be little room for rapeseed meal prices to fall. Overall, the market will remain strong recently, and buyers can take a hand-to-mouth basis.
Imported fishmeal: Imported fishmeal prices stay stable with no negotiating space today. Quotation at ports: it is priced steadily at 9,900-10,000 yuan/tonne for Peruvian Fair Average Quality SD with 65% protein content, 10,200-10,300 yuan/tonne for Thai SD with 67% protein content, 10,500-10,600 yuan/tonne for Japanese SD with 67% protein content and 10,900-11,200 yuan/tonne for super steam fishmeal with 68% protein content. Stocks at port: Huangpu 113,000 tonnes, Fuzhou 27,000 tonnes, Shanghai 78,000 tonnes, Tianjin 1,000 tonnes, Dalian 20,000 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 1,630 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. The demand for fishmeal is restricted by a slow recovery in aquaculture and the African swine fever, and with the import of new products from Peru, the total inventory has piled up to 244,000 tonnes. But there is still support from firm prices in foreign markets and price inversions at home and abroad. Overall, fishmeal market is predicted to keep steady in the short run.
Cottonseed meal: Cottonseed meals today are stable with some rises of 20-50 yuan/tonne, as the operation rates and output are low; cottonseed price is strong; today meals on DCE extend the rise and spot soybean meal goes up 10-30 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 general demand in downstream is not good. Short-term cottonseed meal is likely to fluctuate narrowly. Buyers are suggested to take a hand-to-mouth buying strategy.
(USD $1=CNY 6.87)
