Today is 03/29/2024

Daily Review on Meal Market in China--20/8/2019

2019-08-20 www.cofeed.com
Today (Aug. 20th), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean closed lower last night as the crops in the Midwest was watered by favorable rains over the weekend and was forecast to have more rains this week, but meal futures fluctuate to inch higher on the Dalian Commodity Exchange today. Spot bids for soybean meal go up by 10-20 yuan/tonne to attract some low-level purchases, but the total trading remains tepid. Specifically, the price settles at 2,840-2,900 yuan/tonne in coastal areas. (Tianjin 2,900, Shandong 2,840-2,870, Jiangsu 2,850-2,900, Dongguan 2,830-2,870, Guangxi 2,850-2,860 and Fujian 2,840-2,870). The weather speculation on U.S. soybean crops has yet completed, and there is still no sign of a thaw in the trade frictions between China and the United States. But the African swine fever has been reported in Jiangsu recently, and some mills are still choke-full with soybean meal as there is not much improvement in demand. These are all negative to soybean meal prices. In a hybrid of a bull and a bear, short-term soybean meal market may fluctuate narrowly to adjust, and buyers can take hand-to-mouth buying, or replenish in small quantity if out of stock. 

Imported rapeseed meal: Imported rapeseed meal declines in price today, of which it settles down 10-20 yuan at 2,400-2,480 yuan/tonne in coastal areas. (Guangxi not offered; Guangdong 2,400, down 10; and Fujian 2,410, down 20). The share of rapeseed meal in feed has been substantially supplanted by soybean meal due to their largely narrowed price gap. In addition, the inventory of beet pulp pellet increased by 15% to 140,000 tonnes last week, and its arrivals will be huge in later period. And global soybean is in large supply and its arrivals are also predicted to be substantial at domestic ports. Meanwhile, there is no big improvement in the demand for meals under the contagious African swine fever. But mills have lowered down their rapeseed crush sharply due to a tight outlook of rapeseed supply amid pending issues between Beijing and Ottawa. Overall, short-term rapeseed meal market may fluctuate at a narrow range, and buyers out of stock can replenish slightly on the dips as there are moderate rebounds in futures prices in afternoon trade. 

Imported fishmeal: Imported fishmeal price stays stable today with some negotiating space. Quotation at ports: it is priced steadily at 9,700-9,900 yuan/tonne for Peruvian Standard SD with 65% protein content, 10,000-10,200 yuan/tonne for Thai SD with 67% protein content, 10,300-10,500 yuan/tonne for Japanese SD with 67% protein content, and 10,700-10,900 yuan/tonne for super SD with 68% protein content and 10,300-10,600 for old products. Stocks at port: Huangpu 134,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 85,000 tonnes, Tianjin 1,000 tonnes, Dalian 19,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. The prices keep steady in foreign markets today: it is 1,270 USD/tonne for Peruvian Standard SD with 65% protein content and 1,380 USD/tonne for super SD with 68% protein content. Chilean Standard SD with 65% protein content is 1,360 USD/tonne, and super SD with 68% protein content at 1,590 USD/tonne. Due to a slowdown in demand growth from aquaculture and a smaller hog herd subject to the African swine fever, fishmeal consumption is limited. Meanwhile, the market is in a glut and the inventory stays at a high level at ports with continuous arrivals of new fishmeal from Peru. As holders are under sales pressure, fishmeal prices are also restricted. Overall, short-term fishmeal market is predicted to stay stable with a weak trend.

Cottonseed oil: Cottonseed oil today stays stable when operation rate and stock are both low; oil market is in a busy season of restocking for packing oil amid many orders waiting for delivery. However, cottonseed oil consumption for blending oil is at a limited level. Short-term cottonseed oil is likely to fluctuate with strong trend. Buyers are suggested to stay on the sideline or take a hand-to-mouth buying strategy.

(USD $1=CNY 7.05)