Today (Apr. 27), the market for meals in China is shown as follows:
Soybean meal: US soybean futures ended lower last Friday due to demand uncertainty stemming from the global coronavirus pandemic and as farmers were harvesting and selling their crops at full swing in South America. Meal futures move higher after low opens on the Dalian Commodity Exchange today. Soybean meal spot prices steadily fall by 10-20 CNY/tonne in tepid trading. Specifically, the price settles at 2880-3050 CNY/tonne today. (Tianjin 3050, Shandong 2960-3000, Jiangsu 2965-3010, Dongguan 2880-2900, and Guangxi 2890-2930.) China continues buying up on Brazilian soybeans due to generous crushing margins, and now it has also increased US soybean purchases. The monthly average of soybean arrivals at ports could reach an overwhelming level from May to July, so soybean crush will gradually pock up in coming weeks. The demand for meat products gets affected as catering businesses are hit severely due to the spread of the coronavirus across the world, which has thus shaken the market confidence. Soybean meal is in thin trading recently, so that its weekly stocks increase by 19% to 160,000 tonnes. Distributors become willing to make shipments to book profits, which is a shock in soybean meal market. But it can still take time to ease soybean meal supplies in the spot market, and DCE meal futures are resilient now. Overall, due to adequate crushing margins and huge soybean imports, soybean meal market may have a negative prospect. The price spread between spots and futures is wide now, so that spot prices are fluctuating towards futures. Buyers can wait at the moment or buy on immediate demand.
Imported rapeseed meal: Imported rapeseed meal rises in price today, of which it settles up 10-40 CNY/tonne at 2,330-2,410 CNY/tonne in coastal areas (Guangxi 2,400, up 40; Guangdong not available; Fujian 2,410). The operation rate among rapeseed crushing mills is low amid continuous tensions between China and Canada. And aquaculture is close to a peak season, so the delivery of rapeseed meal gets quicker. In consequence, rapeseed meal stocks in coastal areas decreased to 7,000 tonnes, with a decline of 83% than a year earlier. Thus, rapeseed meal market is boosted. But Chinese buyers keep purchasing soybean, driven by considerable crush margins of its futures. And the arrival of soybeans from May to July will likely reach an average of 9.8 mln tonnes. In this case, soybean crush will rise further for the next two weeks. Last week, soybean meal stocks have increased by 21% to 160,000 tonnes. Nevertheless, foodservices are in under great impact of the coronavirus pandemic, affecting demand for meats directly. Accordingly, rapeseed meal price is curbed and the upward momentum is still limited. Overall, rapeseed meal market is likely to track futures to fluctuate frequently. Buyers had better not chase up price too excessively.
Imported fishmeal: Imported fishmeal prices are stable today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 12,000-12,300 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 12,200-12,700 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 13,200-13,300 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 14,000 CNY/tonne. Peru is still dealing with the coronavirus and its president has announced to extend nationwide lockdown till May 10. The market forecast that it might be difficult to carry out fish catches in the new season in Peru. Besides, high protein fishmeal is in tight supplies, so that traders are stalling sales, which is good to the market. However, domestic consumption of fishmeal is small in the aquaculture, and downstream buyers remain cautious at current high prices; hence, the trading is subdued at ports. On the whole, fishmeal market is predicted to keep steady in the short term. Stocks at port: Huangpu 54,000 tonnes, Fuzhou 25,000 tonnes, Shanghai 38,000 tonnes, Tianjin 1,000 tonnes, Dalian 11,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. FOB quotes from foreign markets today: It is quoted steadily at 1,470 USD/tonne for Peruvian Standard with 65% protein content and at 1,700-1,720 USD/tonne for Peruvian super with 68% protein content. Chilean Standard with 65% protein content is quoted steadily at 1,470-1,520 USD/tonne, and super with 68% protein content steadily at 1,720-1,750 USD/tonne.
Cottonseed meal: Cottonseed meal prices are mainly stable but rise by 50 CNY/tonne in individual regions today. Soybean oil on Dalian Commodity Exchange (DCE) declines today, dragging down cottonseed oil trading. Meanwhile, cottonseed is pricey, and the operation rate among crushing mills in Shandong gets lower, so a few factories prop up meals price. But spot soybean meal steadily down by 10-20 CNY/tonne. Additionally, the coronavirus pandemic has greatly hit global foodservices, thereby affecting the demand for meats and striking market confidence. Thus, cottonseed meal price is depressed by these factors and will likely fluctuate to adjust in the near term.
(USD $1=CNY ￥7.07)
