Today (May 9), the market for meals in China is shown as follows:
Soybean meal: U.S. soybean futures closed further higher on Friday on worries about U.S. crop weather and as China bought U.S. soybeans under the trade deal. Meal futures also moved higher in after-hour trading on Dalian Commodity Exchange (DCE) on Friday night, and DCE is closed on Saturday today. Soybean meal spot prices steadily fluctuate by 10-20 CNY/tonne in tepid trading. Specifically, the price settles at 2740-2850 CNY/tonne today. (Tianjin 2840, Shandong 2790-2800, Jiangsu 2785-2840, Dongguan 2730-2740, and Guangxi 2740-2800.) Monthly soybean imports are forecast to average at nearly 10 mln tonnes for May, June and July, and weekly soybean crush will also get near to 2 mln tonnes in coming two weeks; Hence, soybean meal stocks will continue the uptrend and oil mills have also lifted restrictions on delivery. As catering businesses are crippling under the coronavirus pandemic, farmers have slowed down their pace in making livestock and poultry replenishment due to declining prices. Besides, distributors have been in a rush for clearing stocks. Overall, soybean meal spot prices are forecast to fluctuate to downside in the short run, but US soybean futures may act as a short-term support. Buyers can keep light stockpiles at the moment.
Imported rapeseed meal: Chinese Vice Premier Liu He, U.S. Trade Representative and Treasury Secretary held a phone call on Friday to press ahead with implementing phase-1 trade deal. China had resumed the purchase of U.S. soybeans. Consequently, US soybeans ended up last night, but rapeseed meal futures on Zhengzhou Commodity Exchange closed down. Besides, meals futures closed in China as today is the weekend. And domestic spot rapeseed meal price is not available today, while few available down by 20 CNY/tonne. In addition, rapeseed meal stocks in coastal regions increase to 9,500 tonnes this week, up 72% from a week earlier. And the monthly arrival of imported soybean will reach nearly 10 mln tonnes from May to July, causing tremendous pressure from ports to emerge. In this case, soybean crush will be close to an extremely high level of 2 mln tonnes in the coming two weeks. Furthermore, global catering services have severely hit by the widespread of COVID-19, impacting demand for meats directly. Therefore, rapeseed meal price is dragged down, and spot rapeseed meal will still fluctuate in the near term. Buyers can take a hand-to-mouth buying.
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, with over 60,000 confirmed coronavirus cases, has extended a nationwide lockdown by two weeks until May 24. And the Peruvian government has assigned a quota of 2.413 mln tonnes for the new fishing season in centre-north oceans, but fishing activities may get affected by the pandemic. Chinese fishmeal market is in an atmosphere of waiting for fresh cues, which helps the market stay stable. However, aquaculture has not been in full swing in China, so its fishmeal consumption is still limited. Meanwhile, downstream buyers do not take current prices as reasonable ones and thus just make small purchases. The thin trading at port is bearish to the market. On the whole, fishmeal market is predicted to stay stable in the short term. Stocks at port: Huangpu 57,000 tonnes, Fuzhou 23,000 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 today. Cottonseed is pricey due to supply shortages, and the operation rate among inland oil mills is low, which both offer support to cottonseed meal market. Additionally, the widespread of coronavirus pandemic has greatly hit global foodservices, so the price of pork, egg and broiler in China is declining continually, which strikes farmers’ positivity in recovering poultry population. Moreover, the operation rate among soyoil mills rapidly rises to high levels. Therefore, these factors are shaking cottonseed meal market’s confidence. It is predicted that short-term cottonseed meal price may fluctuate to adjust.
(USD $1=CNY ￥7.08)
