Rapeseed meal prices in China continue to decline

The average market price of rapeseed meal was 2,812 yuan/tonne on March 13, and 2,710 yuan/tonne on March 18, representing a decline of 3.63%.

A significant strengthening of Canadian canola futures prices initially supported the domestic rapeseed meal market on the cost side. However, the cost-driven price increase subsequently weakened, and domestic rapeseed meal prices declined.

Despite a small buildup of domestic rapeseed meal inventories, the overall level remains relatively low, providing some support for spot prices. Due to the easing of trade relations between China and Canada, the market generally expects a gradual increase in Canadian canola volumes arriving at ports at a later stage, and long-term supply pressure is gradually beginning to emerge.

Currently, the traditional aquaculture off-season is still underway, and actual large-scale consumption of rapeseed meal has not yet begun. Animal feed producers are taking a cautious purchasing approach, focusing primarily on essential supplies, and their enthusiasm for this approach is low, making it difficult to effectively increase prices.

Rapeseed meal inventories are maintained at low levels, but there is currently insufficient demand and long-term supply pressure. In the short term, the rapeseed meal market will continue to experience pressure.

Tags: China, prices, rapeseed meal