Today (May 11), the market for meals in China is shown as follows:
Soybean meal: U.S. soybean futures closed further higher on Friday, as chief trade negotiators from China and the U.S. held phone talks to propel phase-one trade deal. Meal futures mildly fluctuate on the Dalian Commodity Exchange today. Soybean meal spot prices steadily fluctuate by 10-30 CNY/tonne in tepid trading and settle at 2700-2840 CNY/tonne today. (Tianjin 2840, Shandong 2780-2800, Jiangsu 2755-2800, Dongguan 2700-2710, and Guangxi 2740-2800.) China has been vigorously buying up on soybeans due to abundant crush margins for imported soybeans on the DCE, so that May-July shipments heading for China will reach an eye-popping level. Oil mills have sharply raised operation rates and weekly soybean crush is forecast to get near to 2 mln tonnes both this week and next week; hence, soybean meal stocks have continued the uptrend with a huge rise this week, which has basically eased tight supplies in the market. But soybean meal market has been in thin trading after the May Day vacation, as livestock and poultry prices have been declining when catering businesses are struggling to survive under the coronavirus pandemic. These are bearish to meal prices. U.S. soybean futures saw bounces for several sessions on exports, new crop planted area and weather, which also brings short-term support to domestic meal market. Overall, soybean meal market is predicted to fluctuate with slight declines, and buyers can buy on immediate demand.
Imported rapeseed meal: Imported rapeseed meal declines in price today, of which it settles down 10-20 CNY/tonne at 2,290-2,390 CNY/tonne in coastal areas (Guangxi not available; Guangdong 2,230; Fujian 2,370, down 20). The inventories of rapeseed meal in coastal areas last week increased to 9,500 tonnes, with a rise of 72% from a week earlier. Besides, the pressure from large quantity of soybean arrival has started emerging, which may lead soybean crush to almost equal to 2 mln tonnes for the next two weeks and soybean meal stocks to keep rallying. On the other hand, the widespread of coronavirus pandemic has severely hit global catering services, impacting demand for meats directly. Consequently, the price of animal products is trending down, dragging down rapeseed meal price. Therefore, spot rapeseed meal will still fluctuate in a short term, and 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’s Ministry of Production (Produce) announced to start the first 2020 fishing season on May 13, with the quota at 2.413 million tonnes in the north-central oceans, but the COVID-19 is still spreading in this country; hence, traders in China now have a strong wait-and-see mood, which makes domestic fishmeal 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 higher by 50 USD at 1,500 USD/tonne for Peruvian Standard with 65% protein content and steadily 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 mainly keep steady and rise by 20 CNY/tonne in several regions today. Cottonseed is pricey due to supply shortages, so cottonseed meal price remains high supported by the cost. 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, and the price of cottonseed meal has overtaken soybean meal. 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)
