July 4, 2017
China Soymeal Weekly: Prices consolidate higher, but stay at 15-month low (week ended Jul 2, 2017)
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Price summary
Prices were stable to higher.
|
Weekly transacted prices of soymeal in China | ||||
|
Region |
Protein content (%) |
Price as of Jun 26 |
Price as of Jul 2 |
Price change |
|
Heilongjiang |
43% |
2,800 |
2,760 |
-40 |
|
Liaoning |
43% |
2,760 |
2,760 |
0 |
|
Hebei |
43% |
2,700 |
2,700 |
0 |
|
Shandong |
43% |
2,650 |
2,700 |
50 |
|
Jiangsu |
43% |
2,640 |
2,660 |
20 |
|
Guangdong |
43% |
2,660 |
2,670 |
10 |
|
Prices are representative and are for reference only. | ||||
Market analysis
Prices of CBOT August soy futures surged 4.2% as USDA lowered projections of planting acreage and soy inventories.
Although soy futures prices rose sharply, China's soymeal market remained relatively stable, consolidating higher by 0.25% on average. Supplies remained high as crushers maintained high output amid excess soy availability. Nevertheless, feed millers limited buying even though hog prices showed signs of stabilising of late.
Down by 20% during the first half of this year, soymeal prices are at 15-month lows.
During May, China imported 9.6 million tonnes of soy, soaring 20% on-month and 25% compared with a year ago.
Meanwhile, inventories of soy in major ports totalled 7.3 million tonnes by end of June, more by almost 5% on-year.
Market forecast
High inventory pressure will compel crushers to hold down soymeal prices in efforts to clear stocks. However, with import costs prominently higher due to the recent soy futures rebound, soymeal market is less likely to weaken excessively in the near term.
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