Today (Apr. 29), the market for meals in China is shown as follows:
Soybean meal: US soybean futures closed lower on Tuesday, and meal futures move lower on the Dalian Commodity Exchange today. Soybean meal spot prices steadily drop by 10-20 CNY/tonne in tepid trading. Specifically, the price settles at 2850-2940 CNY/tonne today. (Tianjin 2940, Shandong 2920-2970, Jiangsu 2900-2930, Dongguan 2850-2880, and Guangxi 2850-2860.) China has started to pick up US soybean purchases, while still buying up on Brazilian soybeans due to generous crushing margins. May soybean arrivals at domestic ports are forecast to reach 9.87 mln tonnes, according to data surveyed by Cofeed, and mills will thus gradually raise operation rates for soybean crush. Catering services have suffered heavy losses from the pandemic, thus leading to a huge decline in demand for meat products. And farmers also slow down their pace in increasing hog and poultry stocks as domestic pork, egg and broiler prices are all declining. In addition, weekly soybean meal stocks have increased by 19% to 160,000 tonnes, so that distributors become willing to make shipments to book profits. But oil mills still intend to prop up soybean meal prices as they almost have no spot goods for sales and it can still take time to ease supply tensions. Overall, soybean meal market will probably fluctuate to downside close to futures prices in the short run. Buyers can stay on the sidelines for the moment.
Imported rapeseed meal: Imported rapeseed meal declines in price today, of which it settles down 30-50 CNY/tonne at 2,280-2,380 CNY/tonne in coastal areas (Guangxi 2,350, down 50; Guangdong not available; Fujian 2,350, down 30). China has increased purchase of U.S. soybean. And Chinese buyers also keep buying Brazilian soybean, driven by considerable crush margins of its futures. In this case, soybean will arrive at ports in huge quantity from May to July, and soybean crush will rise to 1.75 mln tonnes over the next two weeks, leading a gradual increase in soybean meal supply. Last week, soybean meal stocks increased by 19% to 160,000 tonnes. Nevertheless, foodservices are under great impact of the coronavirus pandemic, affecting demand for meats more. Accordingly, rapeseed meal price is curbed. But rapeseed meal inventory stays at low levels due to low rapeseed crush, which is helpful to limit price declines. Buyers can make small replenishment upon low and stable prices.
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 13,200-13,300CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 14,000 CNY/tonne. Fish catches in the new season could get affected as Peru will be in the state of emergency till May 10, which might lead to a tight outlook in fishmeal supply. And traders are stalling sales since high protein fishmeal has been in tight supplies. However, aquaculture has not been in full swing in northern China, so its fishmeal consumption is still limited. Downstream buyers do not take current prices as reasonable ones and thus just make few purchases. The thin trading at port is bearish to the market. On the whole, fishmeal market is predicted to have some upward potential in the short term. Stocks at port: Huangpu 56,000 tonnes, Fuzhou 24,000 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 keep steady with partial rises of 10-50 CNY/tonne today. The cottonseed oil market is poor. And the delivery price of Xinjiang cottonseed increases with resuming the charge of nationwide toll roads since May 6th, so the cost also gets higher. Likewise, some factories raise meals prices amid the low operation rate. Additionally, the coronavirus pandemic has greatly hit global foodservices, thereby affecting the demand for meats more and striking meals market confidence. Moreover, soyoil mills raise the operation rate, driven by considerable crush margins and huge arrival of soybeans. Today, meals on DCE fall back, and spot soybean meal steadily down by 10-20 CNY/tonne. Thus, cottonseed meal price is depressed by these factors. Besides, the price of Xinjiang cottonseed meal is impacted by rising freight. It is predicted that short-term cottonseed meal price will fluctuate at a narrow range.
(USD $1=CNY ￥7.07)
