July 21, 2015
 
China Soymeal Weekly: Price rally cools (week ended Jul 19, 2015)
                                                                            
An eFeedLink Exclusive
 
 
Price summary
 
Prices were stable to higher.
 

Weekly transacted prices of soymeal in China

Region

Protein content (%)

Price as of Jul 12
(RMB/tonne)

Price as of Jul 19
(RMB/tonne)

Price change
(Percentage)

Heilongjiang

43

3,000

3,000

0

Liaoning

43

2,810

2,860

50

Hebei

43

2,850

2,860

10

Shandong

43

2,880

2,860

-20

Jiangsu

43

2,880

2,880

0

Guangdong

43

2,820

2,840

20

Prices are representative and are for reference only.
RMB1=US$0.1610 (Jul 21)

 
 
Market analysis
 
CBOT soy futures moved lower over the week as the climates in the planting regions of the US improved, whereas South American producers competed to close export deals.
 
Trade was light in China as buyers withheld purchases while CBOT soy futures prices consolidated lower. Over the week, soymeal transaction volumes of major crushers dropped 32% to 225,650 tonnes. Nonetheless, crushers, who were mainly producing to fulfil previously concluded deal, were under no pressure to slash prices.
 
 
Market forecast
 
Buyers will remain cautious as CBOT soy futures prices have broken the US10/bushel psychological support level, albeit temporarily, in the previous week. Moreover, with the population of poultry staying flat in June and the inventories of hog diminishing, the demand for animal feed is unlikely to pick up in the near term. Soymeal prices will therefore be under pressure in China.
 


 
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