October 30, 2018
China Soymeal Weekly: Significant fall in China soymeal prices as CBOT weakens (week ended Oct 29, 2018)
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Price summary
Prices dropped substantially.
|
Weekly transacted prices of soymeal in China | ||||
|
Region |
Protein content (%) |
Price as of |
Price as of |
Price change |
|
Heilongjiang |
43% |
3,650 |
3,560 |
-90 |
|
Liaoning |
43% |
3,690 |
3,570 |
-120 |
|
Hebei |
43% |
3,690 |
3,540 |
-150 |
|
Shandong |
43% |
3,650 |
3,520 |
-130 |
|
Jiangsu |
43% |
3,630 |
3,570 |
-60 |
|
Guangdong |
43% |
3,630 |
3,610 |
-20 |
|
Prices are representative and are for reference only. | ||||
Market analysis
Over the week, prices of CBOT January soy futures closed 1.5% lower.
As CBOT soy futures prices continued to drop, soymeal buyers in China turned cautious. The outbreak of African swine fever in the country, which showed no signs of improving, further eroded the confidence of buyers. Consequently, soymeal prices slid 1.5% while the output of crushers in major coastal provinces expanded by 80,000 tonnes to 1.73 million tonnes.
Market forecast
Although China government has lowered the requirement of protein in hog feed on average by 1.5%, the shortage of soymeal cannot be fully resolved. Prices are seen stable to higher in the longer term even as feed producers limit purchases prudently.
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