October 16, 2017
China Soymeal Weekly: Strong global soy market lifts China soymeal prices (week ended Oct 16, 2017)
An eFeedLink Exclusive
Price summary
Prices continued to surge.
|
Weekly transacted prices of soymeal in China | ||||
|
Region |
Protein content (%) |
Price as of Oct 2 |
Price as of Oct 16 |
Price change |
|
Heilongjiang |
43% |
2,900 |
3,000 |
100 |
|
Liaoning |
43% |
3,100 |
3,220 |
120 |
|
Hebei |
43% |
2,880 |
3,100 |
220 |
|
Shandong |
43% |
2,880 |
3,000 |
120 |
|
Jiangsu |
43% |
2,850 |
3,000 |
150 |
|
Guangdong |
43% |
2,890 |
2,970 |
80 |
|
Prices are representative and are for reference only. | ||||
Market analysis
Prices of CBOT November soy futures surged 3.6% over the past two weeks.
As USDA lowered the projection of soy yield on October 12 against expectations, futures prices soared while speculators covered short positions.
Oil crushers resumed operation after the holidays, lifting soymeal output substantially over the past week to 1.6 million tonnes. However, oil crushers stood firm amid low inventory pressure. After CBOT soy futures prices rallied towards the end of last week, crushers lifted prices in tandem even as sales were slow.
On average, soymeal prices increased 3.4% compared with late September prices.
China imported 8.11 million tonnes of soy in September.
Market forecast
Oil crushers will not be eager to negotiate prices with inventories low and global soy futures market staying strong. However, as most feed millers have accumulated stocks prior to the long October holidays, soft demand will limit the upward scope of soymeal market.
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