China boosts rapeseed meal demand amid sunflower meal supply disruptions

Black Sea logistics disruptions could reduce sunflower meal supplies to China and support demand for rapeseed meal as an alternative feed ingredient. Ukraine has become China’s largest supplier of sunflower meal in recent years.

Some cargoes are being redirected through Danube ports due to disruptions in Black Sea shipping, but these routes are also facing delays. If logistics problems persist, tighter sunflower meal supplies could raise prices and encourage Chinese feed producers to increase the share of rapeseed meal in their formulations.

Demand for rapeseed meal is also being supported by a wide price spread with soymeal. As of September 15, the spread between soybean meal and rapeseed meal futures in China reached 1,091 yuan/t, compared with a five-year average of around 600 yuan/t.

The wider spread is making rapeseed meal more competitive in feed formulations. Chinese feed producers have already increased its inclusion rate, while spot rapeseed meal prices in Dongguan recently rose by 50 yuan/t to 2,470 yuan/t.

At the same time, recovering supplies of Canadian rapeseed and rapeseed meal could limit further price gains. The key factors to watch will be Black Sea logistics, the pace of Canadian arrivals and US soybean price trends.

Tags: rapeseed meal, China, logistics, sunflower meal