Today (May 15), the market for meals in China is shown as follows:
Soybean meal: U.S. soybean futures closed further lower on Thursday on a bearish supply outlook. And meal futures swing to adjust on the Dalian Commodity Exchange today. Soybean meal spot prices steadily go down by 10-30 CNY/tonne in tepid trading and settle at 2600-2710 CNY/tonne today. (Tianjin 2710, Shandong 2665-2700, Jiangsu 2680-2690, Dongguan 2600-2630, and Guangxi 2670-2690.) Pressured by huge soybean imports of nearly 10 mln tonnes each from May to July, oil mills have briskly picked up operation rates. Soybean meal stocks have been mounting higher, easing tight supplies in the market. But soybean meal has been in thin trading for weeks, for prices of livestock and poultry products have been falling when global food services are reeling under the pandemic. In China, hog prices stay at 26.5 CNY/kg, a sharp decline of 13 CNY/kg from a high level in mid-February. Soybean meal has thus descended to thin trading for weeks. And distributors have been in panic selling, so that they have lowered down prices more than oil mills. Overall, short-term spot soybean meal market is predicted to fluctuate with a weakening trend. Participants can keep an eye on weather conditions in the US soybean producing regions and China-US relationship, for President Donald Trump has been critical of the Chinese government on issue of COVID-19. Buyers can wait for low and stable prices to make appropriate replenishment.
Imported rapeseed meal: Imported rapeseed meal edges up in price today, of which it partly settles up 10 CNY/tonne at 2,240-2,330 CNY/tonne in coastal areas (Guangxi not available; Guangdong 2,280, down 10; Fujian 2,300, down 20). The tensions between China and Canada have yet to be eased, the relations between China and Australia become strained as well, which may affect later import of Australian rapeseed. And the operation rate among rapeseed crushing mills is low. Moreover, the aquaculture has entered into a peak season, boosting rapeseed meal market. However, large quantity of imported soybean has just begun to arrive at ports successively, with nearly 10 mln tonnes of monthly arrival from May to July. Based on this, oil plants gradually promote the operation rate, causing a consecutive rally in soybean meal stocks. On the other hand, the widespread of coronavirus pandemic has severely stricken global catering services, impacting demand for meats directly. Consequently, meals price is dampened by these factors. As the upward momentum of rapeseed meal is still limited in the near term, the price may follows futures to fluctuate at a narrow range on the whole. Buyers can make small replenishment upon low price and remain cautious in chasing up price.
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. A high proportion of juvenile fishes has led to a five-day fishing ban just at the very start of the new season in Peru. As of May 13th, fish catches totaled 3334 tonnes in this season in centre-north regions, with an average of 175 tonnes per vessel. The volume is disappointing along with the severe pandemic in this country, casting doubts about fishing activities in the new season. However, a neutral level of Peru’s fishing quota at 2.413 mln tonnes in the new season is still working in the market, so that actual trading prices are somewhat loosen in the fishmeal market at ports in China. Overall, fishmeal market is predicted to stay stable in the short term. Stocks at port: Huangpu 55,000 tonnes, Fuzhou 22,000 tonnes, Shanghai 37,000 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 1,500 USD/tonne for Peruvian Standard with 65% protein content and at 1,720-1,750 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. The pressure from large quantity of imported soybean arrival has started emerging, with nearly 10 mln tonnes each month from May to July. In this case, the operation rate among crushing mills improves rapidly, and soybean meal stocks keep rising. Thus, the tight supply almost has been eased. Besides, spot soybean meal steadily down by 10-30 CNY/tonne, depressing cottonseed meal market with a tepid trading. However, cottonseed is pricey due to supply shortages, so cottonseed meal price remains high supported by the cost. And most of oil mills in Xinjiang have no inventory of cottonseed meal, so some factories raise the price of Xinjiang cottonseed amid short supply, which bolsters cottonseed meal market tentatively. It is predicted that short-term cottonseed meal price may continue to adjust with fluctuations.
(USD $1=CNY ￥7.09)
