Today (Mar 22), the market for meals in China is shown as follows:
Soybean meal: U.S. soybean futures closed sharply higher last Friday on a slow pace in soybean harvest in Brazil. Meal futures open high and rise on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 20-40 CNY to 3,250-3,300 CNY/tonne, in tepid trade. (Tianjin 3300, Shandong 3270-3290, Jiangsu 3255-3280, Dongguan 3250-3270, and Guangxi 3270-3290.)
Crush margins for imported soybeans are at heavy loss on Dalian, and soybean crush volume will remain low in March and April as some mills are facing soybean shortages under small imports in February and March. And some millers have also signed a lot of presales contracts and show strong sentiment to support prices. But 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 for weeks, and its inventory snaps off a decline to steady this week. In addition, a volatile financial market is also weighing on the bullish confidence. Overall, short-term soybean meal prices may have limited rises and follow futures to swing.
Rapeseed meal: U.S. soybean futures closed higher on Friday. Rapeseed meal futures further rise after opening high on China’s Zhengzhou Commodity Exchange today. Spot rapeseed meal is offered at 2,760-2,840 CNY/tonne in coastal regions, an increase of 20-30 CNY/tonne, in tepid trade. Tightening supplies of Canadian old rapeseed spark higher cost of importing rapeseed, causing continued losses on crush margins for rapeseed futures. This has affected crusher’s positivity in making purchases. Besides, many crushing mills are idled by a shortfall in soybeans, making soybean crush low. This has given 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 poultry stocks also has not recovered yet. And aquaculture has not been in full swing at the moment. Consequently, feed enterprises are cautious in making purchases, which has led to a subdued trade in meal products. Some crushing mills suspend the operation as soybean meal stocks swell, tentatively dragging down meals prices. It is projected that short-term rapeseed meal prices will likely fluctuate at a narrow range.
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. It is reported that strikes launched by the Peruvian national transport and drivers guild (GNTC) have been settled, easing concerns over a delay in fishmeal shipments. Most traders now show weak sentiment in supporting prices. Overall, domestic fishmeal market is predicted to show a weak trend to decline in the near term.
Stocks at ports: Dalian 10,190 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 30-200 CNY/tonne today. 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 not been in full swing for the moment, so feed enterprises are wary of making purchases. Consequently, soybean meal has been in light trading in recent weeks, and soybean meal stocks stop falling and shift to stabilize, which weighs on meals prices. 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 still move with fluctuations.
(USD $1=CNY ¥6.52)