March 14, 2017
China Soymeal Weekly: Softer prices move sales (week ended Mar 13, 2017)
An eFeedLink Exclusive
Price summary
Prices moved lower.
|
Weekly transacted prices of soymeal in China | ||||
|
Region |
Protein content (%) |
Price as of Mar 6 |
Price as of Mar 13 |
Price change |
|
Heilongjiang |
43% |
3,450 |
3,380 |
-70 |
|
Liaoning |
43% |
3,260 |
3,220 |
-40 |
|
Hebei |
43% |
3,150 |
3,110 |
-40 |
|
Shandong |
43% |
3,100 |
3,050 |
-50 |
|
Jiangsu |
43% |
3,150 |
3,100 |
-50 |
|
Guangdong |
43% |
3,090 |
3,030 |
-60 |
|
Prices are representative and are for reference only. | ||||
Market analysis
Prices of CBOT soy May futures plunged over 3% to two-month low, as the commodities market weakened under a strong US dollar.
Feed millers were cautious with soymeal buying although feed demand is expected to recover gradually. With supplies abundant, crushers lowered prices to promote sales, stimulating transaction of soymeal to increase 12% to 915,400 tonnes.
Market forecast
Soymeal inventories of major crushers have dropped over 2% over the past week whereas unfulfilled deals rose sharply by 15% to 3.7 million tonnes. Crushers will not be keen to lower soymeal prices.
However, with global soy market under pressure and feed millers treading prudently, prices of soymeal should remain weak in the near term.
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