Today (Aug. 5th), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean climbed slightly higher last Friday. And today, China’s yuan has tumbled to the weaker side of the key 7-per-dollar threshold amid the escalation in trade disputes and the offshore exchange rate has even dipped below 7.10, which has significantly increased import cost, so meal futures open higher and extend gains on the Dalian Commodity Exchange. A report by Bloomberg said that the Chinese government has asked its state-owned enterprises to suspend imports of U.S. agricultural products after President Donald Trump ratcheted up trade tensions last week, so mills take the opportunity to raise prices on the back of meal gains on the DCE under this bullish report. Spot bids for soybean meal go higher by 20-40 yuan/tonne from last Friday to attract some low-level purchases. Specifically, the price settles at 2,760-2,840 yuan/tonne in coastal areas. (Tianjin 2,840, Shandong 2,820-2,840, Jiangsu 2,780-2,790, Dongguan 2,810-2,820, Guangxi 2,780-2,810 and Fujian 2,760-2,780). But meal demand has been delicate due to the African swine fever which has caused a decline in hog amount and is particularly serious in Sichuan, Hunan and Hubei, so soybean meal prices have limited upward impetus. Overall, short-term soybean meal prices may follow futures to fluctuate to rebound moderately due to the underlying weather speculation on U.S. soybean crops and the escalation of trade frictions, and buyers are suggested to replenish appropriately on the dips and avoid driving up prices for the moment. 

Imported rapeseed meal: Imported rapeseed meal rises in price today, of which it settles up 30-50 yuan at 2,450-2,520 yuan/tonne in coastal areas. (Guangxi not offered; Guangdong 2,470, up 30; and Fujian 2,450). A report by Bloomberg said that the Chinese government has asked its state-owned enterprises to suspend imports of U.S. agricultural products after President Donald Trump ratcheted up trade tensions last week. Meanwhile, rapeseed supply is tightening due to unresolved issues between China and Canada. Therefore, rapeseed meal prices are shored up to rise. However, rapeseed meal has increased by 29% to 37,500 tonnes in inventory last week as its demand is seriously influenced by its largely narrowed price gap with soybean meal. And it is difficult to eliminate the impact brought by the African swine fever. Moreover, mills will gradually raise their operation rate under the huge soybean import of 9.10 mln tonnes in August. Rapeseed meal prices will thus find limited upward space. Buyers are suggested to replenish appropriately on the dips and not to drive up price for the moment. 

Imported fishmeal: Imported fishmeal price stays stable with huge negotiating space today. Quotation at ports: it is priced steadily at 9,900-10,000 yuan/tonne for Peruvian Standard SD with 65% protein content, 10,000-10,200 yuan/tonne for Thai SD with 67% protein content, 10,300-10,500 yuan/tonne for Japanese SD with 67% protein content and 10,700-11,200 yuan/tonne for super SD with 68% protein content. Stocks at port: Huangpu 127,000 tonnes, Fuzhou 32,000 tonnes, Shanghai 83,000 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 with mixed quotations as holders are willing to carry out shipment and some have even lowered down their prices in view of high stocks at port amid tepid demand at home and constant arrivals of new products from Peru. But the market is receiving support from the RMB devaluation subject to the trade frictions and intensified price inversion of fishmeal at home and abroad. Overall, fishmeal market is predicted to post slight declines in the short run.

Cottonseed meal: Cottonseed meals today are stable with some rises of 20-50 yuan/tonne, when operation rate keep at a low level amid a low level of inventory; there are still some rigid demands in downstream; the soybean import margin greatly increases on Yuan weakness, the onshore breaking through key 7 per dollar and the onshore once breaking through 7.10 due to  re-escalation of U.S.-China trade conflicts; meals on DCE today go up with high open, spot soybean meal up 20-40 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 greatly. Buyers had better maintain proper stock level upon low price and be prudent if chasing high.