Today (Jul. 30th), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures extended gains in overnight trading on hopes for the trade detente as China and the United States are holding trade talks in Shanghai today and tomorrow, and meal futures tick higher after lower opens on the Dalian Commodity Exchange (DCE) today. Spot bids for soybean meal partially increase by 10-20 yuan/tonne with better trading at low levels. Specifically, the price settles at 2,740-2,790 yuan/tonne in coastal areas. (Tianjin 2,790, Shandong 2,740-2,770, Jiangsu 2,740-2,770, Dongguan 2,750-2,760, and Guangxi 2,730-2,760). Meal futures on the DCE post rebounds today as the market needs technical corrections for oversold after recent consecutive losses and some traders close their positions after profit-taking in the arbitrage of buying oils and selling meals. This has buoyed the spot market. But soybean takes on a huge import outlook, whilst soybean meal is still in gloomy demand with swelling inventory due to the African swine fever, which is relatively most severe in Sichuan, Hunan and Hubei. These bearish fundamentals will keep a lid on price rebounds. Buyers can make proper replenishment on the dips and remain cautious in chasing up prices.  

Imported rapeseed meal: Imported rapeseed meal rises in price today, of which it settles up 20-30 yuan at 2,360-2,450 yuan/tonne in coastal areas. (Guangxi not offered; Guangdong 2,450, up 20; and Fujian 2,360, up 30). Rapeseed meal prices are buoyed by a tight supply outlook of rapeseed amid pending conflicts between Ottawa and Beijing, as well as the underlying weather speculation for U.S. soybean crops. But the demand for rapeseed meal is severely impacted by its largely narrowed price spread with soybean meal. Meanwhile, it is difficult to eliminate the influence caused by the African swine fever in the short term, which is particularly severe in Sichuan, Hunan and Hubei. Moreover, soybean import will be huge in the next four months. Therefore, rapeseed meal will have limited upward potential. Buyers can make appropriate replenishment on the dips and remain cautious in driving up prices. Participants can keep a close watch on Washington-Beijing trade talks.

Imported fishmeal: Imported fishmeal prices stay stable today, and there is a price gap between new and old fishmeal. Quotation at ports: it is priced steadily at 9,900-10,000 yuan/tonne for Peruvian Standard SD with 65% protein content, 10,200-10,300 yuan/tonne for Thai SD with 67% protein content, 10,500-10,600 yuan/tonne for Japanese SD with 67% protein content and 10,800-11,200 yuan/tonne for super SD with 68% protein content. Stocks at port: Huangpu 125,000 tonnes, Fuzhou 31,000 tonnes, Shanghai 82,000 tonnes, Tianjin 1,000 tonnes, Dalian 23,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. Peruvian merchants have quoted steadily today: it is 1,340 USD/tonne for Peruvian Standard SD with 65% protein content and 1,540 USD/tonne for super SD with 68% protein content. Chilean Standard SD with 65% protein content is 1,360 USD/tonne, and super SD with 68% protein content at 1,590 USD/tonne. Fishmeal market is negative due to high stocks at port amid tepid demand at home and constant arrivals of new products from Peru, but it is still propped up by price inversions at home and abroad. Therefore, fishmeal market is predicted to keep steady with slight declines in the short run.

Cottonseed meal: Today cottonseed meal stays stable when operation rate keep at a low level amid a low level of inventory; there are still some rigid demands in downstream; meals on DCE today go up with low open, spot soybean meal partially up 10-20 yuan/tonne. However, the overall demand is not good due to African swine fever and the narrow price spread between soybean meal and cottonseed oil. Short-term cottonseed meal is likely to fluctuate in narrow range. Buyers may make small replenishment upon low prices if inventory is insufficient.