Today ( Oct. 10th), the market for meals in China is shown as follows:
Soybean meal: US soybean ended lower last night. Today meals on DCE suffer small volatility. And spots of domestic soybean meal stay stagnant and keep stable in fluctuation, and see little trading volume. The prices in coastal areas range from 3,580 to 3,650 yuan/tonne, fluctuating steadily at 10-20 yuan/tonne against yesterday (Tianjin 3,650, Shandong 3,580-3,630, Jiangsu 3,600-3,650, Dongguan 3,630-3,650, Guangxi 3,620-3,650). The recent bearish state of soybean meal market is mainly attributed to its high price and its declining ending demand amid low pig replenishment rate under rampant ASF. Besides, market participants are anxious that USDA may again raise soybean output and stock in its monthly demand & supply report on Thursday evening. However, oil mills are still positive toward later market, for soybean supply will be further tightened by the escalating trade tensions. Overall, soybean meal price will not suffer large callbacks, and will keep to go upside, and buyers are suggested to make replenishment on the dip.
Imported rapeseed meal: Prices for imported rapeseed meal basically keep stable today, among which prices in coastal areas range from 2,680-2,760 yuan/tonne (Fanchenggang Maple, Guangxi offers 2,690; Dongguan Fuzhiyuan, Guangdong 2,720; Zhangzhou Chinatex, Fujian 1901+120 upon basis). Rapeseed meal enters tight supply after enjoying satisfactory demand for the spread of 900 yuan/tonne with soybean meal. In addition, forward soybean supply will get tighter and tighter since there is slim hope for a thaw in US-China trade tensions. For this, oil mills are looking forward to bullish later market, and rapeseed meal price will keep trending up in volatility before trade conflicts ease. By the way, market participants predict a bearish demand&supply report by USDA this Thursday evening. Overall, buyer with adequate stock can just wait and watch out for the short fluctuations after large price hikes of rapeseed meal.
Imported fishmeal: Today, imported fishmeal price goes down slightly in a stable state and can be traded with price negotiations, with modest shipment at port generally. Northern ports: price is 10,600-10,700 yuan/tonne for Peruvian ordinary SD with 65% protein content and 11,700-11,800 yuan/tonne for Japanese SD with 67% protein content, down 100 from yesterday; and 11,900-12,000 yuan/tonne for super steam fishmeal with 68% protein content, down 100 from yesterday. Southern port: Peruvian ordinary SD fishmeal with 65% protein content is 10,700 yuan/tonne; Peruvian Japanese SD fishmeal with 67% protein content is 11,800 yuan/tonne; Peruvian super SD fishmeal with 68% protein content is 12,000 yuan/tonne. Stocks at port: Huangpu 52,000 tonnes, Fuzhou 38,000 tonnes, Shanghai 51,000 tonnes, Tianjin 1,000 tonnes, Dalian 7,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. Spot quotations (FOB) in foreign market keep stable: Peruvian ordinary SD fishmeal with 65% protein content is quoted at 1,360 USD/tonne, and 1,630 USD/tonne for super SD fishmeal with 68% protein content. Chilean ordinary fishmeal with 65% protein content is quoted at 1,510 USD/tonne, prime with 68% protein content is 1,620 USD/tonne. Fishmeal demand gets slack with the completion of aquaculture from north to south in China, so holders begin to show boredom in selling. Overall, short-term fishmeal market may still have small declines.
Cottonseed meal: Contributed to the forward supply gap of soybean during the escalating trade tensions, soybean meal soars in price, which enlarges its spread with cottonseed meal, and thus increasing the demand for cottonseed meal. Today, cottonseed meal price has another gain of 20 yuan/tonne amid partially its tight supply, and it will go upside in fluctuation before trade tensions ease. But it may suffer short volatility after new cottonseed enters into market during the rampant ASF and slack demand from aquaculture. Overall, buyers can make replenishment on the dip, but not force up prices if holding enough stock.
(USD $1=CNY 6.92)
