Today is 03/29/2024

Daily Review on Meal Market in China--24/2/2020

2020-02-24 www.cofeed.com
Today (Feb. 24), the market for meals in China is shown as follows:

Soybean meal: US soybean closed with losses last Friday, and meal futures also drop further after lower opens on the Dalian Commodity Exchange today. Soybean meal spot prices decline by 20-30 yuan/tonne in tepid trading. Specifically, the price settles at2630-2810yuan/tonne today. (Tianjin 2810, Shandong 2750-2840, Jiangsu 2700-2800, Dongguan 2630-2650, and Guangxi 2640-2670.) Currently, mills have resumed to the normal production, so soybean crush weekly follows to return to a high level of 1.80 mln tonnes. In the meantime, soybean meal supply gets tight in the northern regions but remains relatively huge in the south, leading to the diversion from the south to the north, so the prices fall from the high level in the northern markets. In particular, distributors have cut the spot prices sharply. And soybean meal market goes into thinner trading after a round of active replenishment. However, the overall soybean meal stocks are still low at present, and some mills are still setting limited quantity for delivery. In addition, the central government has expanded the range on subsidies and discounted loans to cover more hog farms, which is favorable to stimulate middle and small farms to recover hog production. And soybean meal consumption has also quickened up as feed enterprises resume work. On the whole, soybean meal market may follow futures to keep range-bound to adjust in the short term. Buyers can wait for low and stable prices to make replenishment. 

Imported rapeseed meal: Imported rapeseed meal declines in price today, of which it settles down 20-40 yuan/tonne at 2,180-2,330 yuan/tonne in coastal areas (Guangxi 2,200, down 20; Guangdong not offered; Fujian 2,240, down 30). As the soybean crush has rebounded to 1.8 mln tonnes over last week, soybean meal supply will keep increasing. Besides, the novel coronavirus pneumonia outbreak has resulted in a hard hit in catering and tourism, thereby affecting meats consumption, and the overall consumption for meals will go down. Also, the demand from aquaculture has been in a slack season. Additionally, rapeseed meal stocks in coastal areas increased by 15% to 25,500 tonnes last week. Therefore, rapeseed meal prices are curbed by these factors. But rapeseed is in short supply amid continuous tensions between China and Canada, so oil mills reduce the operation rate. Accordingly, short-term rapeseed meal market is likely to fall slightly with fluctuations. And buyers can wait and see.

Imported fishmeal: Imported fishmeal prices are stable with a partial decline of 100 yuan/tonne today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 12,000-12,200 yuan/tonne; Peruvian higher-quality SD with 65% protein content is 12,200-12,500 yuan/tonne; Peruvian higher-quality SD with 67% protein content is 12,800-13,000yuan/tonne; and Peruvian Super Prime SD with 68% protein content is 13,200-13,300yuan/tonne. The epidemic has gradually been under control in China, although it has yet come to an end. Some fresh goods has been at ports, so traders cut the price today to boost consumption. But currently, the supply is uneven in the market, and some traders have been in short of stocks; hence, traders are seeking to lift the price. On the whole, the market is predicted to keep steady in the short term. Stocks at port: Huangpu 57,000 tonnes, Fuzhou 29,000 tonnes, Shanghai 32,000 tonnes, Tianjin 1,000 tonnes, Dalian 10,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. FOB quotes from foreign merchants today: It is quoted steadily at 1,430 USD/tonne for Peruvian Standard with 65% protein content and 1,730 USD/tonne for Peruvian super with 68% protein content. Chilean Standard with 65% protein content is unchanged at 1,400 USD/tonne, and super with 68% protein content at 1,700 USD/tonne.

Cottonseed meal: Cottonseed meal prices are mostly not offered today. Partial prices decrease by 50-100 yuan/tonne, while individual up by 50 yuan/tonne. The demand for cottonseed meal is limited by an inversion of price spread between soybean meal and it. Besides, the demand for meats has affected by novel coronavirus pneumonia outbreak, thereby the demand outlook of meals is also worrisome. Besides, meals on Dalian Commodity Exchange fall back with low opens today, and spot soybean meal drops by 20-30 yuan/tonne. Consequently, these are causing cottonseed meal price to recede from highs. But the overall operation rate of oil mills stays at a low level now. And cottonseed meal inventories are low. Therefore, the price declines of cottonseed meal are limited temporarily, and short-term market is predicted to fluctuate weakly. With crush enterprises resuming the production successively, there is an increased risk of dropping in cottonseed meal prices.

(USD $1=CNY¥7.02)