August 11, 2014

China Soymeal Weekly: Record soy imports limits upward potential of soymeal market (week ended Aug 10, 2014)
                                                                            
An eFeedLink Exclusive
 
 
Price summary
 
Prices were mostly higher.
 

Region

Protein content (%)

Price as of Aug 3
(RMB/tonne)

Price as of Aug 10
(RMB/tonne)

Price change
(Percentage)

Heilongjiang

43

3,800

3,830

30

Liaoning

43

3,690

3,640

-50

Hebei

43

3,650

3,680

30

Shandong

43

3,580

3,610

30

Jiangsu

43

3,650

3,650

0

Guangdong

43

3,580

3,630

50

Prices are representative and are for reference only.
RMB1=US$0.1625 (Aug 11)

 
 
Market analysis
 
CBOT soy futures prices continued to rise from low levels over the week.
 
China's soymeal demand increased steadily as feed millers accumulated stocks in anticipation of higher feed demand. However, prices of soymeal rose at a slow pace as the availability of soymeal was ample with July's monthly import of soy hitting a new record of 7.48 million tonnes.
 
 
Market forecast
 
China's soymeal prices are expected to soar further as crushers, who are incurring losses, attempt to maximise returns while feed demand expands with the approaching of Mid-Autumn Festival.
 
However, should USDA's agricultural update on August 12 report a better-than-expected forecast of soy output, tumbling CBOT soy futures prices will drag down soymeal prices in China.
 

 


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