January 19, 2016
China Soymeal Weekly: Lower US soy production forecast, firm pre-festive demand uphold China soymeal prices (week ended Jan 17, 2016)
An eFeedLink Exclusive
Price summary
Prices were stable to higher.
|
Weekly transacted prices of soymeal in China | ||||
|
Region |
Protein content (%) |
Price as of Jan 10 |
Price as of Jan 17 |
Price change |
|
Heilongjiang |
43% |
3,000 |
3,000 |
0 |
|
Liaoning |
43% |
2,590 |
2,590 |
0 |
|
Hebei |
43% |
2,600 |
2,620 |
20 |
|
Shandong |
43% |
2,570 |
2,600 |
30 |
|
Jiangsu |
43% |
2,590 |
2,550 |
-40 |
|
Guangdong |
43% |
3,000 |
2,600 |
30 |
|
Prices are representative and are for reference only. | ||||
Market analysis
Over the week, CBOT soy futures moved higher as USDA lowered US soybean production forecast in the latest report.
With the support of a stronger soy market and firm pre-Chinese New Year demand, soymeal prices strengthened modestly. Most crushers have limited stocks to offer and were producing to fulfil previously concluded orders.
Market forecast
Several crushers have started to prepare for the upcoming long Chinese New Year holidays, cutting production after fulfilling the pre-festive orders. In the coming weeks, soymeal supplies are expected to decrease at a faster pace. This will help to underpin prices in conjunction with rising costs of imported soy even though demand is poised to dwindle as well.
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