Today (Mar 19), the market for meals in China is shown as follows:
Soybean meal: U.S. soybean futures closed with sharp loss below the key 1,400 cents on Thursday on improving weather in South America, an expected sharp rise in planting acreage under high U.S. soybean prices, and also a stronger U.S. dollar. Meal futures open low and decline on China’s Dalian Commodity Exchange today. Spot soybean meal prices go down 20-40 CNY to 3,220-3,270 CNY/tonne, in tepid trade. (Tianjin 3270, Shandong 3220-3240, Jiangsu 3210-3260, Dongguan 3220-3250, and Guangxi 3240-3250.)
The resurgence of the African swine fever leads to cautious mood among producers, poultry stocks have not resumed yet and aquaculture has also not started; thus, feed manufacturers are slow in feedstock purchase. Soybean meal market remains in subdued trade and some millers are forced to suspend the crush due to swelling meal inventories, which are curbing meal prices. But soybean crush margins are negative at present, and the overall crush volume this week and next week will keep low for a lack of beans, so soybean meal stocks are expected to decline. Add to that, some millers have sold out meal for March contracts. As U.S. soybean futures start to ease from the high level and it will take time for soybean meal supply to get tense albeit low soybean crush, short-term soybean meal prices will probably follow futures to fluctuate to adjust. Buyers can stay on the sidelines.
Rapeseed meal: U.S. soybean futures closed lower on Thursday. Rapeseed meal futures fluctuate to go up on China’s Zhengzhou Commodity Exchange today. Spot rapeseed meal is offered at 2,730-2,820 CNY/tonne in coastal regions, a fluctuation of 10-20 CNY/tonne, in tepid trade. Tightening supplies of Canadian old rapeseed spark higher cost of importing rapeseed, causing continued losses on crush margins. This has affected crusher’s positivity in making purchases. And rapeseed arrivals in March decline to 2 cargoes from 4 cargoes. Besides, many crushing mills are idled by a shortfall in soybeans during the month of March and April, giving a boost to rapeseed meal market. But farmers are not active in replenishing hog stocks due to a resurgence of African swine fever in some regions. And aquaculture has yet to totally begin at the moment. These have led to a subdued trade in meal products, which weighs on meals prices. It is projected that rapeseed meal prices will likely fluctuate narrowly in a short term.
Imported fishmeal: Imported fishmeal prices steady in China today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 9,700-10,000 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,200-10,500 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 10,700-10,900 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,200-11,400 CNY/tonne. Port fishmeal stocks continue rising up to nearly 120,000 tonnes in China now due to the arrivals of fresh cargoes, whilst feed demand is small now due to slack aquaculture season and low hog stocks. But the Peruvian national transport and drivers guild (GNTC) said that the strike started from March 15 will be indefinite until the government meet its demand. This could lead to a delay fishmeal shipments, thus lending some support to traders’ sales sentiment. In the near term, fishmeal market in China is predicted to steady with slight adjustments.
Stocks at ports: Dalian 10,090 tonnes, Tianjin 810 tonnes, Shanghai 43,560 tonnes, Huangpu 43,600 tonnes, Fuzhou 14,700 tonnes, Fangchenggang 1,080 tonnes and 4,175 tonnes at other ports.
FOB quotes from foreign markets today: Apr/May shipments are quoted steadily at 1,410 USD/tonne for Peruvian Standard with 65% protein content and at 1,630 USD/tonne for Peruvian super with 68% protein content. Chilean Standard with 65% protein content is quoted steadily at 1,430 USD/tonne, and super with 68% protein content at 1,600 USD/tonne.
Cottonseed meal: Cottonseed meal prices in China stay stable with a partial decrease of 20 CNY/tonne today. U.S. soybean futures plunged on Thursday and dropped below 1,400 cents. Meals futures on Dalian edge lower after low opens today. But the downside for meals is limited by a steep decline on oils. Spot soybean meal decreases by 20-40 CNY/tonne in coastal region. Farmers are cautious in replenishing hog stocks amid the resurgence of African swine fever. Meanwhile, poultry inventory has not been rebuilt yet. Plus, aquaculture has yet to begin for the moment, so feed enterprises are wary of making purchases. Consequently, soybean meal is in light trading, and some soybean crushing mills suspend the processing as soybean meal stocks swell, cracking down soybean meal price. Besides, cottonseed meal trade is tepid currently result from a lack of rigid demand, which curbs its market tentatively. Additionally, most of cottonseed oil plants are idled at present, bringing some support to cottonseed meal market. Therefore, short-term cottonseed meal price will likely follow soybean meal to move with fluctuations.
(USD $1=CNY ¥6.51)