eFeedLink - China Soymeal Weekly: Cautious buying weighs on market (week ended Apr 1, 2019)

April 4, 2019

China Soymeal Weekly: Cautious buying weighs on market (week ended Apr 1, 2019)

An eFeedLink Exclusive

Price summary

Prices moved lower.

Weekly transacted prices of soymeal in China
Region	Protein content (%)	Price as of Mar 25 (RMB/tonne)	Price as of Apr 1 (RMB/tonne)	Price change (Percentage)
Heilongjiang	43%	2,616	2,584	-32
Liaoning	43%	2,666	2,620	-46
Hebei	43%	2,622	2,556	-66
Shandong	43%	2,520	2,518	-2
Jiangsu	43%	2,576	2,548	-28
Guangdong	43%	2,596	2,544	-52
Prices are representative and are for reference only. RMB1=US$0.1489 (Apr 4)

Market analysis

Over the week, prices of CBOT May soy futures dropped 0.40%.

Following the recent week's upsurge, the demand for soymeal slackened as buyers turned cautious. Moreover, with the quantity of hog staying low despite the strengthening of prices, feed producers remained cautious in stockpiling soymeal inventories.

On average, soymeal prices decreased 1.5% over the week.

Market forecast

Soymeal prices are seen soft due to lacklustre hog feed demand and a soft global soy market. However, at current levels, soymeal prices are less likely to drop prominently.