October 31, 2016
China Soymeal Weekly: Strong soy futures market support, soymeal prices (week ended Oct 30, 2016)
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Price summary
Prices continued to rise.
|
Weekly transacted prices of soymeal in China | ||||
|
Region |
Protein content (%) |
Price as of Oct 23 |
Price as of Oct 30 |
Price change |
|
Heilongjiang |
43% |
3,380 |
3,380 |
0 |
|
Liaoning |
43% |
3,270 |
3,340 |
70 |
|
Hebei |
43% |
3,250 |
3,340 |
90 |
|
Shandong |
43% |
3,200 |
3,300 |
100 |
|
Jiangsu |
43% |
3,240 |
3,300 |
60 |
|
Guangdong |
43% |
3,260 |
3,370 |
110 |
|
Prices are representative and are for reference only. | ||||
Market analysis
January CBOT soy futures rose by almost 2% as a soft US dollar helped to lift the prices of commodities globally.
This supported the soymeal futures prices of Dalian Commodities Exchange to move higher over the week. With the crushing rates lower, and the future prices of soymeal poised to move higher, spot prices surged despite transaction volumes falling below last week's level.
Market forecast
Global soy futures prices should remain firm while the US dollar stays weak. This, in conjunction with increased import costs due to a depreciating renminbi, will underpin soymeal prices in China despite lacklustre feed demand.
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