August 21, 2018
                           
China Soymeal Weekly: Prices surge for fourth consecutive week (week ended Aug 20, 2018)
                                                                                  
An eFeedLink Exclusive
 
 
Price summary
 
Prices were mostly higher.
 

Weekly transacted prices of soymeal in China

Region

Protein content (%)

Price as of Aug 13
(RMB/tonne)

Price as of Aug 20
(RMB/tonne)

Price change
(Percentage)

Heilongjiang

43%

3,090

3,070

-20

Liaoning

43%

3,080

3,100

20

Hebei

43%

3,170

3,280

110

Shandong

43%

3,180

3,240

60

Jiangsu

43%

3,200

3,240

40

Guangdong

43%

3,380

3,260

-120

Prices are representative and are for reference only.
RMB1=US$0.1462 (Aug 21)

 
 
Market analysis
 
Over the week, prices of CBOT November soy futures rebounded 3.6%.
 
Soymeal market stayed strong amid supply concerns due to the trade war. In view of higher feed demand entering September as farmers fatten animals before releasing to the festive markets, feed mills expanded stockpiles of soymeal to ensure sable supply.
 
On average, soymeal price increased 2.1% over the week in review. Over the past four weeks, soymeal prices have surged 5.5%.
 
 
Market forecast
 
In the long term, unless the high tariff on soy import is lifted, soymeal prices will remain firm in China due to increased costs and concerns over supplies. In the near term, higher pre-festive feed demand will lend further support to the market.
 


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