Today (Jun 9), the market for meals in China is shown as follows:
Soybean meal: U.S. soybean futures ended lower on Monday as traders sold out technically on disappointing export data. Meal futures edge lower on the Dalian Commodity Exchange today. Spot soybean meal goes down by 10-30 CNY/tonne in thin trading. The price settles at 2640-2760 CNY/tonne in coastal regions. (Tianjin 2760, Shandong 2690-2740, Jiangsu 2660-2680, Dongguan 2640-2660, and Guangxi 2650-2680.) China’s monthly soybean imports are predicted to surpass an average of 10 mln tonnes between June and August, and oil mills have thus maintained operation rates at high levels; hence, soybean meal stocks in coastal regions continue the rise for a seventh straight week by 4% to total 670,000 tonnes. In addition, there have been continuous rains in southern China, which has affected local aquaculture and also interrupted soybean meal shipments and deliveries. And traders are selling meals today to book profits on the DCE, which is also weighing down meal prices. However, U.S. soybean crops are in critical growth period, and China and the U.S. are also in tensions, which may help limit the decline in soybean meal prices. Overall, soybean meal market is predicted to keep range-bound with a strengthening trend. Buyers can wait for low and stable prices to make appropriate replenishment.
Imported rapeseed meal: U.S. soybean futures closed lower on Monday on disappointing export data. But rapeseed meal futures on Zhengzhou Commodity Exchange fluctuate to rise slightly today, and rapeseed meal price in coastal regions settles at 2,250-2,370 with tepid trading. 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. Likewise, due to continuous rainfall in South area, the aquaculture is also impacted in Guangdong and Guangxi. 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. In addition, Huawei’s CFO Meng Wanzhou did not get released, escalating tensions between Ottawa and Beijing, so Canadian canola imports were still restrained. And there exists uncertainty in ties between U.S. and China, bolstering rapeseed meal price. Therefore, short-term rapeseed meal price is predicted to fluctuate at a narrow range. Buyers can make appropriate replenishment upon low price but not chase up price too excessively.
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 11,500 CNY/tonne, up 100-200 CNY/tonne from yesterday; Peruvian higher-quality SD with 65% protein content is 11,700-11,800 CNY/tonne, up 100 CNY/tonne from yesterday; Peruvian higher-quality SD with 67% protein content is 12,700-12,800 CNY/tonne, up 200 CNY/tonne from yesterday; and Peruvian Super Prime SD with 68% protein content is 13,500-13,700 CNY/tonne, up 100 CNY/tonne from yesterday.
A majority of fishmeal companies in China have low fishmeal stocks at present, while several large feed enterprises have some replenishment. Moreover, fish catches in Peru is still under uncertainty as seas wave are furious in current dry season. Hence, fishmeal traders with low stocks in hand continue raising prices today. However, Chinese feed plants are in a cautious mood due to the tepid demand, so 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 60,000 tonnes, Fuzhou 19,000 tonnes, Shanghai 34,000 tonnes, Tianjin 1,000 tonnes, Dalian 8,000 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 6th (local time), fish catches in the first season of 2020 total 806,327 tonnes, taking up 33.42% of the total quota of 2.413 mln tonnes and with the fishing average at around 32, 000 tonnes per day and 1,606,673 tonnes remaining available.
Cottonseed meal: Cottonseed meal prices keep steady with several declines of 10 CNY/tonne. U.S. soybeans closed lower on Monday as disappointing export data triggered technical selling. Besides, meals on Dalian Commodity Exchange fall back slightly today, and spot soybean meal drops by 10-30 CNY/tonne. Moreover, the price of cottonseed meal has surpassed soybean meal, so some feed mills readjust the feed formula due to low cost performance. And the demand for cottonseed meal has been limited, seeing light trading. But the cost among crushing plants keeps staying at a low level. Hence, cottonseed meal price is supported by these factors. As US soybean has entered into growing period and tensions between U.S. and China rise, short-term cottonseed meal price is limited to pare gains and still likely to fluctuate to stay strong.
(USD $1=CNY ￥7.10)
