December 27, 2016
China Soymeal Weekly: Dwindling demand drags down prices (week ended Dec 25, 2016)
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Price summary
Prices moved lower.
|
Weekly transacted prices of soymeal in China | ||||
|
Region |
Protein content (%) |
Price as of Dec 18 |
Price as of Dec 25 |
Price change |
|
Heilongjiang |
43% |
3,450 |
3,450 |
0 |
|
Liaoning |
43% |
3,670 |
3,540 |
-130 |
|
Hebei |
43% |
3,390 |
3,200 |
-190 |
|
Shandong |
43% |
3,500 |
3,450 |
-50 |
|
Jiangsu |
43% |
3,450 |
3,450 |
0 |
|
Guangdong |
43% |
3,380 |
3,380 |
0 |
|
Prices are representative and are for reference only. | ||||
Market analysis
CBOT soy March futures prices plunged 5%, hitting five-week lows as speculators reaped profits before the festive holidays while the climates in Argentina improved.
In China, demand weakened substantially, dragging weekly transaction volumes to yearly lows. Overall transaction volumes of major crushers dipped 6.5% to 356,800 tonnes.
Soymeal prices dropped in the production region but stayed stable in the consumption region where supplies were limited due to tight transport schedules. On average prices slid 1.8% during the period in review.
Market forecast
As CBOT soy futures prices are under pressure, soy import costs will remain stable to lower despite a weak renminbi. This, together with cautious buying mood, will hold down the prices of soymeal in China.
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