December 19, 2011
China Soymeal Weekly: Market fails to stabilize prices (week ended Dec 16, 2011)
An eFeedLink Exclusive
Price summary
Prices were mostly lower.
|
Weekly transacted prices of soymeal in China | ||||
|
Region |
Protein content (%) |
Price as of Dec 9 |
Price as of Dec 16 |
Price change |
|
Heilongjiang |
43 |
3,100 |
3,050 |
-50 |
|
Liaoning |
43 |
2,980 |
2,980 |
0 |
|
Hebei |
43 |
2,900 |
2,840 |
-60 |
|
Shandong |
43 |
2,850 |
2,800 |
-50 |
|
Jiangsu |
43 |
2,800 |
2,760 |
-40 |
|
Guangdong |
43 |
2,840 |
2,760 |
-80 |
|
Prices are representative and are for reference only. | ||||
Market analysis
Feed mills and traders were not keen to stock inventories as feed demand was flat while supplies stayed abundant. Hence, soymeal prices slid despite showing signs of stabilising in the previous week.
eFeedlink's tracking shows that the operation rate of China's crushing industry is around 61% amid slack demand.
Market forecast
Although the possible reduction in South America's soy harvest is likely to lend support to CBOT soy prices, the upward potential of China's soymeal market will be limited by high soy supplies in the near term.
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