July 26, 2016
 
China Soymeal Weekly: China soymeal prices plunge as global soy futures plummet (week ended Jul 24, 2016)
                                                                            
An eFeedLink Exclusive
 
 
Price summary
 
Prices were significantly lower.
 

Weekly transacted prices of soymeal in China

Region

Protein content (%)

Price as of Jul 17
(RMB/tonne)

Price as of Jul 24
(RMB/tonne)

Price change
(Percentage)

Heilongjiang

43%

3,800

3,800

0

Liaoning

43%

3,430

3,260

-170

Hebei

43%

3,440

3,200

-240

Shandong

43%

3,300

3,040

-260

Jiangsu

43%

3,430

3,340

-90

Guangdong

43%

3,400

3,210

-190

Prices are representative and are for reference only.
RMB1=US$0.1498 (Jul 26)

   

Market analysis
 
CBOT soy futures prices plunged over the week as USDA's latest report projected higher yields amid improved weather conditions in the soy planting regions in August.
 
Soy futures prices in Dalian Commodities Exchange plummeted in response, dragging soymeal prices prominently lower as buyers held back procurements. Feed millers, who faced bloating inventories amid sluggish feed demand, cut production while usages of soymeal slowed.
 
On average, soymeal prices dipped 4.6% over the past week, paring all gains since mid-June.
 

Market forecast
 
Supplies of soymeal is poised to be abundant with soy imports for July, August and September projected at 8.2 million tonnes, 7.5 million tonnes and 6.1 million tonnes respectively. With global soy futures prices more likely to remain weak as speculators stand on the side lines and domestic animal feed demand sluggish, prices of soymeal should move lower in the near term.
 

 


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