October 25, 2016
China Soymeal Weekly: Market stays firm despite higher output (week ended Oct 23, 2016)
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Price summary
Prices moved higher.
|
Weekly transacted prices of soymeal in China | ||||
|
Region |
Protein content (%) |
Price as of Oct 16 |
Price as of Oct 23 |
Price change |
|
Heilongjiang |
43% |
3,380 |
3,380 |
0 |
|
Liaoning |
43% |
3,230 |
3,270 |
40 |
|
Hebei |
43% |
3,190 |
3,250 |
60 |
|
Shandong |
43% |
3,160 |
3,200 |
40 |
|
Jiangsu |
43% |
3,230 |
3,240 |
10 |
|
Guangdong |
43% |
3,220 |
3,260 |
40 |
|
Prices are representative and are for reference only. | ||||
Market analysis
January CBOT soy futures moved higher during the period in review.
As more soy imports arrived of late, crushing rates increased to 51%, lifting soymeal output to 1.65 million tonnes. However, crushers stood firm as prices have dropped prominently recently. Moreover, with renminbi depreciating, import costs of soy have increased with CBOT soy futures prices on the rise.
Market forecast
Demand for soymeal is expected to stay flat with livestock prices remaining weak. However, crushers will be prudent in cutting soymeal prices with a weakening renminbi pushing up import costs of soy.
