September 17, 2018
 
China Soymeal Weekly: China soymeal market continues to unhook from global soy price movements (week ended Sep 17, 2018)
                                                                                  
An eFeedLink Exclusive
 
 
Price summary
 
Prices consolidated higher.

Weekly transacted prices of soymeal in China

Region

Protein content (%)

Price as of
Sep 10
(RMB/tonne)

Price as of
Sep 17
(RMB/tonne)

Price change
(Percentage)

Heilongjiang

43%

3,320

3,240

-80

Liaoning

43%

3,260

3,220

-40

Hebei

43%

3,240

3,290

50

Shandong

43%

3,160

3,210

50

Jiangsu

43%

3,230

3,300

70

Guangdong

43%

3,240

3,280

40

Prices are representative and are for reference only.
RMB1=US$0.1455 (Sep 17)

 
 
Market analysis
 
Over the week, prices of CBOT November soy futures dipped 1.6%.
 
Although the spreading of swine disease decimated the demand for feed and hence soymeal from the livestock sector, prices of soymeal climbed further by 1% amid robust sales. In anticipation of tight soymeal availability and soaring prices due to the intensifying trade war between China and the US, buyers expanded stockpiles keenly.
 
During August, China's soy imports increased 14% compared with July, totalling 9.15 million tonnes. Year-over-year, this was higher by 8%.
 
 
Market forecast
 
Price hikes of soymeal are likely to slow due to the outbreak of African swine fever in China, which will inevitably decimate feed consumption. However, with soy supplies from south America limited and the costs of US soy imports high, soymeal market will stay strong in the longer term.
 
 


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