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September 27, 2016
                           
China Soymeal Weekly: Prices rebound despite a weak global soy market (week ended Sep 25, 2016)
                                                                            
An eFeedLink Exclusive
 
 
Price summary
 
Prices moved higher.
 

Weekly transacted prices of soymeal in China

Region

Protein content (%)

Price as of Sep 18
(RMB/tonne)

Price as of Sep 25
(RMB/tonne)

Price change
(Percentage)

Heilongjiang

43%

3,650

3,650

0

Liaoning

43%

3,200

3,300

100

Hebei

43%

3,200

3,320

120

Shandong

43%

3,200

3,250

50

Jiangsu

43%

3,220

3,310

90

Guangdong

43%

3,230

3,370

140

Prices are representative and are for reference only.
RMB1=US$0.1499 (Sep 27)

 

Market analysis
 
November CBOT soy futures rebounded strong during early parts of the week due to a weaker US dollar, but tumbled before the week ended as traders reaped profits. Soy futures prices were lower by 1.35% over the week.
 
Despite weaker global soy prices, robust demand in China lent support to the soymeal market. As increased feed production during September depleted inventories, feed millers rebuilt stocks before the long October holidays. This, coupled with lower crushing rates, drove up soymeal prices by 2.5%.
 
 
Market forecast
 
US farmers will begin to harvest their soy fields soon, increasing the supply of soy in the market. Moreover, the outlook of soy planting in south America is good, hence adding more pressure to the futures market.
 
Domestically, demand for soymeal will be weak entering October due to diminished animal inventories and a lack of festive stimulation. This year, feed demand is likely be poorer than expected with the confidence of market players dampened by the bleak economy. Soymeal prices are therefore projected to weaken in the coming period.
 
 


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