November 22, 2016

China Soymeal Weekly: Increased supply softens prices (week ended Nov 20, 2016)
                                                                            
An eFeedLink Exclusive
 
 
Price summary
 
Prices consolidated lower.
 

Weekly transacted prices of soymeal in China

Region

Protein content (%)

Price as of Nov 13
(RMB/tonne)

Price as of Nov 20
(RMB/tonne)

Price change
(Percentage)

Heilongjiang

43%

3,380

3,380

0

Liaoning

43%

3,340

3,290

-50

Hebei

43%

3,320

3,280

-40

Shandong

43%

3,250

3,300

50

Jiangsu

43%

3,300

3,340

40

Guangdong

43%

3,280

3,280

0

Prices are representative and are for reference only.
RMB1=US$0.1451 (Nov 22)

 
 
Market analysis
 
January CBOT soy futures prices moved within a narrow range, closing marginally higher before the week ended.
 
In Dalian Commodities Exchange, soymeal futures prices dropped over 2% compared with the previous week. Spot prices of soymeal softened as crushing volumes increased over 3% to 1.89 million tonnes while sales jumped almost 10%.
 
 
Market forecast
 
As US dollar has strengthened about 5% lately, the import costs of US soy will increase in the coming months. This, together with growing feed demand, will underpin soymeal prices in China.
 


 
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