July 25, 2017
China Soymeal Weekly: Dwindling sales limit upward scope of market (week ended Jul 24, 2017)
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Price summary
Prices were mostly higher.
|
Weekly transacted prices of soymeal in China | ||||
|
Region |
Protein content (%) |
Price as of Jul 16 |
Price as of Jul 24 |
Price change |
|
Heilongjiang |
43% |
2,900 |
2,900 |
0 |
|
Liaoning |
43% |
2,930 |
2,970 |
40 |
|
Hebei |
43% |
2,820 |
2,880 |
60 |
|
Shandong |
43% |
2,850 |
2,850 |
0 |
|
Jiangsu |
43% |
2,900 |
2,850 |
-50 |
|
Guangdong |
43% |
2,800 |
2,870 |
70 |
|
Prices are representative and are for reference only. | ||||
Market analysis
Prices of CBOT November soy futures closed higher by 2.1% during the week in review amid concerns of lower-than-expected soy yield in the US.
Soymeal prices remained firm in China. However, prices rose a mere 0.70%, much lower than global soy futures rally. The market lacked momentum to strengthen prominently as weekly soymeal transaction volumes shrank 27% while feed millers limited purchases.
Market forecast
Crushers will attempt to lift prices in the coming period as soy futures markets stay strong. Hence, even as soymeal buying interest is weak in China, prices are expected to remain stable.
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