Today (Aug. 1st), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean closed lower amid little progress in this round of trade talks between China and the United States, and meal futures also pare losses after lower opens on the Dalian Commodity Exchange today. Spot bids for soybean meal drop by 10-20 yuan/tonne with lower trading volume. Specifically, the price settles at 2,700-2,780 yuan/tonne in coastal areas. (Tianjin 2,780, Shandong 2,740-2,770, Jiangsu 2,730-2,740, Dongguan 2,730-2,740, Guangxi 2,740-2,760, and Fujian 2,700-2,750). While mills will step by step pick up their operation rate on account of large soybean imports, the lingering African swine fever, which is most severe in Sichuan, Hunan and Hubei and has caused a sharp decline in hog amount, has weakened the demand; thus, meal prices are under impact. But there still exists uncertainty in trade disputes and the weather speculation on U.S. soybean crops may come back at any time, so mills are still trying to prop up prices. This may help narrow price declines of soybean meal. The overall trend is predicted to fluctuate at a narrow range to adjust, and buyers can stay on the sidelines or buy on immediate demand amid an unclear market outlook.

Imported rapeseed meal: Imported rapeseed meal declines in price today, of which it settles down 10-30 yuan at 2,340-2,430 yuan/tonne in coastal areas. (Guangxi not offered; Guangdong 2,410, down 30; and Fujian 2,340, down 30). Rapeseed meal is in delicate demand, which can be mainly attributed to its small spread of only 390 yuan/tonne with soybean meal. Besides, there are also some other factors that make buyers remain cautious: on one hand, rapeseed meal is in adequate supply when imported pulp pellet is arriving at ports substantially; on the other, the demand is in a gloomy outlook due to the African swine fever, which is especially serious in South China. However, rapeseed supply may get tightened due to the unsolved issues between Beijing and Ottawa, and the weather speculation on U.S. soybean crops may come back at any time; hence, the price declines will be limited from this aspect. Buyers can wait for low and stable prices to make replenishment in small batch. 

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 126,000 tonnes, Fuzhou 31,000 tonnes, Shanghai 82,000 tonnes, Tianjin 1,000 tonnes, Dalian 24,000 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 as holders are willing to carry out shipment and some even lower down their prices in view of high stocks at port amid tepid demand at home and constant arrivals of new products from Peru, but it has also received some support from 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 low level of inventory; there are still some rigid demands in downstream. However, the overall demand is not good due to African swine fever and the narrow price spread between soybean meal and cottonseed oil. Besides, today meals on DCE fall back with low open and spot soybean meals decline 10-20 yuan/tonne when no real progress is made after the ending of this round US-China trade talks. Short-term cottonseed meal is likely to mainly fluctuate in narrow range. Buyers are suggested to stay on the sideline or take a hand-to-mouth buying strategy.