November Rapeseed Meal Prices Would Decline

By CnAgri2018-11-22 10:46:18 Print Driven by a decline in soybean meal prices, the prices of miscellaneous meal such as rapeseed meal and cottonseed meal all showed the decreasing trend. It was predicted that rapeseed meal prices in November possibly would go down. The main reasons are as follows: 
(1) With frequent exchanges of leadership between China and the U.S. since November, the tensions are relieved. The expectations of easing of tensions between China and the U.S. would always exist before the end of November (namely G20 Summit), so soybean and soybean meal prices also would go down, further pushing down the prices of miscellaneous meal such as rapeseed meal. 
 
 
(2) Due to a weak demand, rapeseed meal prices have more downward pressure. Since November, along with the cooling of temperature in the south, a peak of aquaculture has ended, and the demand for rapeseed mainly for aqua feed would go down obviously. 
 
(3) Currently, rapeseed meal sill has the advantage of cost performance. By middle November, rapeseed meal prices had averaged at around RMB 2,500/MT, only RMB 800/MT less than soybean meal prices. For other feed companies, when rapeseed meal prices are RMB 1,000-1,200/MT less than soybean meal prices, it will have substitution effect.
 
So, rapeseed meal prices still would go down in November.