November 8, 2016
China Soymeal Weekly: Prices soften as soy futures market weakens (week ended Nov 6, 2016)
An eFeedLink Exclusive
Price summary
Prices moved lower.
|
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% |
3,340 |
3,230 |
-110 |
|
Hebei |
43% |
3,340 |
3,240 |
-100 |
|
Shandong |
43% |
3,300 |
3,250 |
-50 |
|
Jiangsu |
43% |
3,300 |
3,160 |
-140 |
|
Guangdong |
43% |
3,370 |
3,150 |
-220 |
|
Prices are representative and are for reference only. | ||||
Market analysis
January CBOT soy futures prices dropped over the week, paring previous weeks' gains while market participants turned cautious.
Soymeal demand remained softened after feed millers have made sufficient orders. Hence, weekly transaction volumes fell from 840,000 tonnes to 770,000 tonnes, exerting pressure on the market in conjunction with a weaker soy futures prices.
Market forecast
Soymeal demand will see limited increase due to low animal inventories. This, together with ample soy imports in November should put a lid on soymeal prices unless CBOT soy futures rise prominently.
