Today (May 22), the market for meals in China is shown as follows:
Soybean meal: U.S. soybean futures tumbled on Thursday on concerns over a decline in demand from China amid another escalation in bilateral strained relations. Meal futures fluctuate to move slightly higher on the Dalian Commodity Exchange today. Soybean meal spot prices steadily fluctuate by 10-20 CNY/tonne with some low-level purchases, and settle at 2600-2720 CNY/tonne today. (Tianjin 2720, Shandong 2650-2700, Jiangsu 2650-2700, Dongguan 2600-2610, and Guangxi 2610-2620.) China’s soybean crush saw a significant increase and has been staying at the high level, as monthly soybean imports will reach an average of nearly 10 mln tonnes between May and July. On the demand side, the breeding industry is resuming at a slow pace as global food services have been hammered by the coronavirus pandemic, and the market is forecasting a huge supply outlook, so buyers become more cautious in purchasing. Soybean meal stocks have been rising, especially in Guangdong and Guangxi, where some mills have quickened up deliveries. Weighed on by bearish fundamentals, soybean meal market is predicted to keep range-bound and maintain a weak pattern in the short run.
On Wednesday, the U.S. Senate passed a new legislation--Holding Foreign Companies Accountable Act, which was generally regarded as an arrow toward China and could ultimately bar many Chinese companies from listing shares on U.S. exchanges. And China would introduce legislation for its Hong Kong Special Administrative Region to safeguard national security, according to a spokesperson of China’s National People’s Congress on Thursday. After that, the U.S. President Donald Trump told reporters that “if it happens we’ll address that issue very strongly”. The U.S. President had groundlessly blamed China for its handling of the pandemic. Global stock markets and commodity exchanges broadly fell as tensions got more strained between these two countries. Participants can keep a close eye on any further development, and remain cautious in buying and selling.
Imported rapeseed meal: Imported rapeseed meal price remains flat today, of which it settles at 2,220-2,330 CNY/tonne in coastal areas (Guangxi 2,260, flat; Guangdong not available; Fujian 2,330, up 10). 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 rapeseed. And the operation rate among crushing mills is low currently. Likewise, the aquaculture has entered into a peak season, boosting rapeseed meal market. But there are nearly 10 mln tonnes of soybeans arriving at ports each month from May to July. Such being the huge imports, oil mills improve the operation rate and soybean meal stocks rise consecutively. However, the widespread of coronavirus pandemic has hammered global food services, which leads recovery of demand in breeding industry to not been going as expected. Thus, rapeseed meal price is curbed by these factors. As the upward momentum of rapeseed meal price is still limited in the near term, the overall market is projected to follow futures to fluctuate at a narrow range. Buyers can make small replenishment on the dips but remain cautious in chasing up price.
Imported fishmeal: Imported fishmeal prices are stable in a weak pattern today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 11,500-11,800 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 11,800-12,200 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 12,700-12,800 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 13,600-13,800 CNY/tonne. Domestic fishmeal has already been at high prices at present, so feed mills are cautious in purchasing under dismal demand. Fishmeal trading deals are mainly made through negotiation, which adds bearish impact to the market. However, Peru is in the dry season now when fishing vessels have to sail on the rough seas, in addition to the influence of the coronavirus pandemic, so there are still uncertainties in new fishing season. China’s fishmeal market is surrounded with a strong wait-and-see sentiment now. Overall, short-term fishmeal market is predicted to steady with slight adjustments. Stocks at port: Huangpu 55,000 tonnes, Fuzhou 21,000 tonnes, Shanghai 36,000 tonnes, Tianjin 1,000 tonnes, Dalian 10,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. FOB quotes from foreign markets today: It is quoted steadily at 1,450 USD/tonne for Peruvian Standard with 65% protein content and at 1,680 USD/tonne for Peruvian super with 68% protein content. Chilean Standard with 65% protein content is quoted steadily at 1,490 USD/tonne, and super with 68% protein content at 1,720 USD/tonne.
Cottonseed meal: Cottonseed meal prices keep steady, but several traders raise the price by 20 CNY/tonne today. The cost remains high, and the operation rate stays at a low level. In addition, U.S. Senate passed a bill that said to be aimed at China on Wednesday, which could prevent Chinese firms from going public in U.S.. Likewise, China is set to impose new national security legislation on Hong Kong, a spokesman for the China’s National People’s Congress said on Thursday. And Trump said U.S. would address the issue very strongly if the law is passed, escalating tensions between U.S. and China. Consequently, US soybeans plunged last night. But meals on Dalian Commodity Exchange fluctuate to rise lightly today, and several traders follow it to raise price. However, there are nearly 10 mln tonnes of soybeans arriving at ports each month from May to July. In this case, soybean crush will likely be as high as 2 mln tonnes. And soybean meal stocks increased by 20% to 370,000 tonnes last weekend. Besides, catering services have been hammered by the coronavirus pandemic worldwide, so the demand in farming recovers slowly. With these bearish factors depressing cottonseed meal market, the delivery in factories slows down. It is predicted that short-term cottonseed meal price may continue to adjust with fluctuations. Buyers can buy on immediate demand.
(USD $1=CNY ￥7.09)
