SunSirs: China Domestic Rapeseed Meal will not Change its Weak Position in December 2022

According to the monitoring of SunSirs, the average market price of rapeseed meal was 3,560 RMB/ton on December 1, and 3,328 RMB/ton on December 26, with a decline of 6.52%, 20.15% lower than that on November 1.

In December, the domestic rapeseed meal spot was difficult to change its weakness, continuing the downward trend in November. However, the decline in December was smaller than that in November. At the beginning of this month, Statistics Canada estimated that Canada's rapeseed output in 2022/2023 would be 18.17 million tons, lower than the 19.1 million tons previously predicted, which would benefit the market and boost the domestic rapeseed market. Since the middle and late November, a large number of imported rapeseed have arrived in Hong Kong. The rapeseed supply is sufficient, the operating rate of oil plants has rebounded, the output of rapeseed meal is expected to increase, and the bad rapeseed market continues to decline. As the weather cools, the feeding of aquaculture is weakened, and the rapeseed meal ushers in the traditional off-season, the demand for rapeseed meal is weakened. Negative factors have depressed the price of rapeseed meal. Near the end of the month, rapeseed meal futures rose, and rapeseed meal spot prices rose slightly along with futures.

On December 26, the RM2305 contract, the main force of rapeseed futures in the Zhengzhou Commodity Exchange (CZCE), opened at 3,053 RMB/ton, closed at 3,134 RMB/ton, up 91 RMB/ton, the highest was 3,166 RMB/ton, and the lowest was 3,045 RMB/ton. Yesterday, the settlement was 3,043 RMB/ton, the settlement was 3,110 RMB/ton, the trading volume was 516,431 hands, and the position was 445,775 hands.

Soybean meal: According to the monitoring of SunSirs, the average market price of soybean meal on December 1 was 5,026 RMB/ton, and the average market price of soybean meal on December 26 was 4,748 RMB/ton, with a decline of 5.53% during the period. Soybean meal market fluctuated weakly in December, dragging down the rapeseed meal market. The price difference of soybean and rapeseed meal is large, and the advantages of rapeseed meal are prominent.

The increase of rapeseed meal supply and demand is weak. According to the rapeseed meal analysis of SunSirs, it is expected that the rapeseed meal will mainly operate in a weak and volatile way, and it is also necessary to pay attention to the changes of soybean meal market.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.