Today (Apr. 30), the market for meals in China is shown as follows:
Soybean meal: US soybean futures closed higher on Wednesday on technical buying and on expectations of higher exports to China. And meal futures swing at a narrow range on the Dalian Commodity Exchange today. Some distributors continue lowering down quotes as they rush to clear stocks, and soybean meal spot prices steadily drop by 10-20 CNY/tonne in tepid trading. Specifically, the price settles at 2810-2940 CNY/tonne today. (Tianjin 2940, Shandong 2890-2930, Jiangsu 2880-2930, Dongguan 2810-2840, and Guangxi 2810-2860.) China has started to pick up US soybean purchases, while still buying up on Brazilian soybeans lured by generous crushing margins. Soybean arrivals at ports will be huge from May to July, so oil mills have been set to raise operation rates and soybean meal will be in growing supply. On the demand sides, global 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. Distributors now become willing to make shipments to take profits. Oil mills in eastern regions gradually clear the limit for delivery with rising operation rates. Overall, soybean meal market will probably fluctuate towards futures prices in the short run. Buyers can stay on the sidelines or buy on immediate demand.
Imported rapeseed meal: Imported rapeseed meal declines in price today, of which it settles down 10-20 CNY/tonne at 2,280-2,370 CNY/tonne in coastal areas (Guangxi 2,330, down 20; Guangdong not available; Fujian 2,350, down 30). Chinese buyers keep buying South American soybean, driven by decent crush margins of its futures. In this case, soybean will arrive at ports in huge quantity from May to July, among which it will reach 9.87 mln tonnes in May. Consequently, the operation rate in crushing mills will rise to normal levels, leading a gradual increase in soybean meal supply. Nevertheless, foodservices are still under great impact of the coronavirus pandemic, affecting demand for meats more. Accordingly, rapeseed meal price is curbed. But the tight supply of spot rapeseed meal has not been eased yet, and oil plants have no spot goods for sale. Also, rapeseed meal stocks have been in a low level as aquaculture enters into a peak season, limiting the 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 13,200-13,300 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 14,000 CNY/tonne. Peru's state of emergency and quarantine measures would remain in effect through May 10, and IMAPRE has continued to delay the releases of its exploratory result on fish resources. Fishmeal is likely to go into a tight supply outlook, and domestic are stalling sales due to low super prime stocks. 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 55,000 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 fluctuations of 10-50 CNY/tonne today. The transportation cost of Xinjiang cottonseed will increase with resuming the charge of nationwide toll roads since May 6th, so downstream enterprise stock up in advance. 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. And some dealers who are anxious to clear out stocks continue reducing price, and spot soybean meal steadily down by 10-20 CNY/tonne. Thus, this situation hits cottonseed meal market confidence. Besides, the price of Xinjiang cottonseed meal is impacted by rising freight, with a decline of 10CNY/tonne. It is predicted that short-term cottonseed meal price will fluctuate at a narrow range.
(USD $1=CNY ￥7.06)
