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 |
Price as of Jul 24 |
Price change |
|
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. | ||||
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.
