Today (Jun 5), the market for meals in China is shown as follows:
Soybean meal: U.S. soybean futures climbed further higher on Thursday on a brighter export prospect. The USDA on Thursday confirmed that private exporters sold 120,000 tonnes of soybeans for delivery to unknown destinations, and traders said that China was possibly the buyer. Moreover, U.S. soybeans were more competitive as U.S. dollar went weak. Meal futures also post gains on China’s Dalian Commodity Exchange today. Spot soybean meal increases by 20-30 CNY/tonne to attract some purchases on low spot prices and forward basis. The price settles at 2670-2800 CNY/tonne in coastal regions. (Tianjin 2800, Shandong 2730-2770, Jiangsu 2690-2700, Dongguan 2670-2690, and Guangxi 2670-2690.) Soybean meal shipments are at a fair pace in China now due to a pickup in the demand for feed as hog stocks keep recovering recently. Ahead of a detente between China and the United States, soybean meal prices are predicted to keep range-bound with a strengthening trend and slowly move higher from the bottom. However, China’s soybean meal stocks are picking up at a brisk pace as mills are maintaining high operation rates and soybean imports are predicted to surpass an average of 10 mln tonnes between June and August. Spot soybean meal basis stay in a weak trend now. The rise in soybean meal prices is thus limited due to bearish fundamentals. Buyers with adequate stocks can wait for the moment.
Imported rapeseed meal: U.S. soybean futures closed much higher on Thursday. Today, rapeseed meal futures on Zhengzhou Commodity Exchange rise further, and rapeseed meal price in coastal regions settles up 10-20 CNY/tonne at 2,260-2,390 with tepid trading. In addition, Huawei’s CFO Meng Wanzhou did not get released, escalating tensions between Ottawa and Beijing, so Canadian canola imports were still restrained. The falls in USD coupled with rises in Brazil’s Real enhanced export competitiveness of US soybeans, and US soybean futures rebounded sharply amid China’s purchases. Besides, seeing over 10 mln tonnes of soybean arrivals each month from June to August, the operation rate among soyoil mills stays at extremely high level and soybean meal stocks keep increasing. Likewise, the demand for meats has been greatly impacted by the coronavirus pandemic. Also, people’s consumption of meats goes down after entering into Summer. Consequently, there has been no trading volume in rapeseed meal market. With bearish factors in fundamentals, meals price is under pressure. However, short-term rapeseed meal price is predicted to fluctuate to stay strong before an easing of U.S.-China relations.
Imported fishmeal: Imported fishmeal prices stay stable with a partial rise today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 11,300-11,400 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 11,600-11,700 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 12,500-12,700 CNY/tonne, up 100 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 13,400-13,600 CNY/tonne.
A majority of fishmeal firms in China have low fishmeal stocks at present. And fish catches in Peru is still under uncertainty as seas wave are furious in current dry season. Hence, fishmeal traders are still propping up prices. However, Chinese feed plants are in a cautious mood due to the tepid demand. Fishmeal enterprises have little intention to raise prices. Overall, domestic fishmeal market is predicted to stay stable with slight adjustments in the short run.
Stocks at port: Huangpu 61,000 tonnes, Fuzhou 20,000 tonnes, Shanghai 35,000 tonnes, Tianjin 1,000 tonnes, Dalian 9,000 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.
Fish catches in Peru: As of June 3rd (local time), fish catches in the first season of 2020 total 675,102 tonnes, taking up 27.98% of the total quota of 2.413 mln tonnes and with the fishing average at around 31, 000 tonnes per day and 1,737,898 tonnes remaining available.
Cottonseed meal: Cottonseed meal prices keep steady with partial rise of 20-70 CNY/tonne today, and some traders cut 20 CNY/tonne to attract new orders. USDA reported that private exporters sold 120,000 tonnes of soybeans to unknown destination, and market said it could be China. Besides, the prospect for U.S. soybean exports has been improved due to the weakness in USD. And US soybean futures closed much higher last night. In addition, meals on Dalian Commodity Exchange rise further today, and spot soybean meal up by 20-30 CNY/tonne. Moreover, the cost remains high. And the operation rate among crushing mills stays at low levels. Accordingly, cottonseed meal prices are boosted by these factors. However, the price of cottonseed meal has surpassed soybean meal, so some feed mills readjust the feed formula due to low cost performance. But the demand for cottonseed meal has been limited. Thus, short-term cottonseed meal price is likely to fluctuate to rebound moderately before an easing of U.S-China relations.
(USD $1=CNY ￥7.10)
