December 11, 2017
China Soymeal Weekly: Prices increase on higher demand (week ended Dec 11, 2017)
An eFeedLink Exclusive
Price summary
Prices were mostly higher.
|
Weekly transacted prices of soymeal in China | ||||
|
Region |
Protein content (%) |
Price as of Dec 4 |
Price as of Dec 11 |
Price change |
|
Heilongjiang |
43% |
3,000 |
3,000 |
0 |
|
Liaoning |
43% |
3,110 |
3,140 |
30 |
|
Hebei |
43% |
3,050 |
3,050 |
0 |
|
Shandong |
43% |
2,950 |
3,000 |
50 |
|
Jiangsu |
43% |
2,980 |
3,060 |
80 |
|
Guangdong |
43% |
2,970 |
3,040 |
70 |
|
Prices are representative and are for reference only. | ||||
Market analysis
Prices of CBOT January soy futures slid 0.46% during the week in review. Even as the market was concerned over soy production in South America due to adverse climates, ample availability of soy in the US held down price.
Nevertheless, weekly soymeal sales soared 247% to 747,500 tonne, perking up prices in China. With livestock feed demand expanding, feed millers were more willing to stock soymeal inventories, particularly as fishmeal prices have surged prominently lately.
Market forecast
China's soymeal market is expected to stay firm on stable demand. Should USDA lower its soy harvest projection for the US, soy futures prices will sure in the global market amid supply concerns, lifting Chinese soymeal prices more significantly.
