March 7, 2016
 
China Soymeal Weekly: China soymeal market weakens despite stronger global soy prices (week ended Mar 6, 2016)
                                                                            
An eFeedLink Exclusive
 
 
Price summary
 
Prices moved lower.
 

Weekly transacted prices of soymeal in China

Region

Protein content (%)

Price as of Feb 29
(RMB/tonne)

Price as of Mar 6
(RMB/tonne)

Price change
(Percentage)

Heilongjiang

43%

3,000

3,000

0

Liaoning

43%

2,560

2,510

-50

Hebei

43%

2,520

2,490

-30

Shandong

43%

2,480

2,470

-10

Jiangsu

43%

2,550

2,500

-50

Guangdong

43%

2,460

2,430

-30

Prices are representative and are for reference only.
RMB1=US$0.1533 (Mar 7)

 
 
Market analysis
 
CBOT soy futures prices surged before the week from record low levels.
 
Despite a stronger global soy market, soymeal prices slid over the past week. Sales were slow as feed millers, who have stockpiled ample inventories before the Chinese New Year holidays, limited procurements. This, together with a rise in the operation rates of crushers, dragged down the prices of soymeal.
 
China's soy imports for March jumped a whopping 27% on-month to 5.3 million tonnes, higher by 18% compared with a year ago.
 
 
Market forecast
 
After the recent upsurge, CBOT soy futures prices are less likely to climb further unless USDA's report on March 9 lowers harvest forecasts tremendously. With soy prices stable, domestic feed demand slack and supplies plentiful, China's soymeal market should to remain weak in the near term.
 


 
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