October 23, 2018

China Soymeal Weekly: Market rally cools down (week ended Oct 22, 2018)
 
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Price summary
 
Prices were mainly stable.
 

Weekly transacted prices of soymeal in China

Region

Protein content (%)

Price as of
Oct 15
(RMB/tonne)

Price as of
Oct 22
(RMB/tonne)

Price change
(Percentage)

Heilongjiang

43%

3,660

3,650

-10

Liaoning

43%

3,700

3,690

-10

Hebei

43%

3,640

3,690

50

Shandong

43%

3,650

3,650

10

Jiangsu

43%

3,630

3,630

0

Guangdong

43%

3,630

3,630

0

Prices are representative and are for reference only.
RMB1=US$0.1441 (Oct 23)


 
Market analysis
 
Over the week, prices of CBOT November soy futures closed 1.2% lower.
 
The fervor in China's soymeal market cooled as the prices of US soy futures softened. Moreover, the outlook of the hog market was uncertain with post-festive population low and the outbreak of African swine fever showing no signs of improving, cautious feed millers withheld buying, hence putting a lid on soymeal prices.
 
Over the week, soymeal prices inched up 0.11% in China.
 
 
Market forecast
 
Soymeal market should stay stable in the near term as buyers who have accumulated some supplies hold back purchases while observing the market movements. However, with soy availability set to be scarce during Q4and the costs of US imports high, prices are projected to strengthen further in the longer term.
 



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