December 6, 2016
China Soymeal Weekly: Weakened demand in consumption region holds prices flat (week ended Dec 4, 2016)
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Price summary
Prices were mixed.
|
Weekly transacted prices of soymeal in China | ||||
|
Region |
Protein content (%) |
Price as of Nov 27 |
Price as of Dec 4 |
Price change |
|
Heilongjiang |
43% |
3,380 |
3,450 |
70 |
|
Liaoning |
43% |
3,410 |
3,420 |
10 |
|
Hebei |
43% |
3,450 |
3,320 |
-130 |
|
Shandong |
43% |
3,500 |
3,500 |
0 |
|
Jiangsu |
43% |
3,500 |
3,460 |
-40 |
|
Guangdong |
43% |
3,370 |
3,340 |
-30 |
|
Prices are representative and are for reference only. | ||||
Market analysis
CBOT soy futures prices dropped 1.57% during the period in review.
Soymeal futures in Dalian Commodities Exchange dropped in tandem while buyers stayed cautious. Spot prices of soymeal slid in the consumption regions amid slack demand for animal feed, but remained flat on average with markets staying firm in the production region.
Transaction volume of soymeal plunged 16% over the week to 1.29 million tonnes, whereas crushing output rose almost 1% to 1.85 million tonnes.
Market forecast
Feed millers who have stocked some supplies are holding back purchases to be prudent. Although soymeal availability is relatively tight, prices are expected to consolidate around the current levels unless CBOT soy futures prices swing wildly.
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