April 5, 2017
China Soymeal Weekly: Sharp fall in CBOT soy futures, weak feed demand drag down China soymeal prices (week ended Apr 3, 2017)
An eFeedLink Exclusive
Price summary
Prices dipped considerably.
|
Weekly transacted prices of soymeal in China | ||||
|
Region |
Protein content (%) |
Price as of Mar 27 |
Price as of Apr 3 |
Price change |
|
Heilongjiang |
43% |
8,200 |
8,200 |
0 |
|
Liaoning |
43% |
8,100 |
8,100 |
0 |
|
Hebei |
43% |
8,500 |
8,500 |
0 |
|
Shandong |
43% |
8,300 |
8,300 |
0 |
|
Jiangsu |
43% |
8,200 |
8,200 |
0 |
|
Guangdong |
43% |
8,300 |
8,300 |
0 |
|
Prices are representative and are for reference only. | ||||
Market analysis
Prices of CBOT May soy futures plunged more than 3% over the past week as USDA reported higher-than-expected planting acreage and soy inventory.
In China, soymeal prices continued to slide as animal feed demand was slow while supplies of soymeal were ample. On average, prices were lower by 2.2% compared with the previous week.
Market forecast
The recovery of the feed industry is slower than usual this year as the outlook of the livestock market is uncertain. Sales of soymeal are therefore weak while feed manufacturers limited stockpiles. With global soy futures markets staying soft and feed demand in China sluggish, soymeal prices are expected to trend lower in the coming period.
