Soybean meal: U.S. soybean closed with gains last night underpinned by concerns over forecasts of adverse crop weather of lower temperatures and more rains in the Midwest that could potentially curb yields. However, China’s Ministry of Commerce confirmed that Chinese enterprises had halted purchases of U.S. agricultural products and China would temporarily not rule out the possibility of levying additional tariffs on imported U.S. agricultural products with deals made after Aug. 3. In addition, after the yuan falling below 7 against the dollar on Monday, said in a report by Bloomberg, the U.S. Treasury Department labeled China a currency manipulator, which has intensified trade tensions between these two countries, and the significant depreciation in yuan has also enhanced soybean import cost. Therefore, meal futures are pushed higher on the Dalian Commodity Exchange (DCE) today. Spot bids for soybean meal go up by 20-50 yuan/tonne from yesterday to attract some low-level purchases, and the total trading is not as good as yesterday. Specifically, the price settles at 2,800-2,870 yuan/tonne in coastal areas. (Tianjin 2,890, Shandong 2,860-2,870, Jiangsu 2,820-2,860, Dongguan 2,850-2,870, Guangxi 2,820-2,860 and Fujian 2,800-2,830). Due to deteriorating US-China trade tensions, growing premiums of Brazilian soybeans and the trading of 430,000 tonnes in soybean meal market yesterday, mills show strong interest in raising the prices. But meal demand has been delicate due to the African swine fever which has caused a sharp 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 be on the strong side in fluctuations amid intensifying trade frictions. Meal futures on the DCE are gradually narrowing down early gains, so buyers with adequate stockpiles had better avoid driving up prices for the moment. 

Imported rapeseed meal: Imported rapeseed meal rises in price today, of which it settles up 20-30 yuan at 2,470-2,550 yuan/tonne in coastal areas. (Guangxi not offered; Guangdong 2,490, up 20; and Fujian 2,470, up 20). U.S. soybean rose last night underpinned by concerns over forecasts of adverse crop weather of lower temperatures and more rains in the U.S. Midwest that could potentially curb yields. However, China’s Ministry of Commerce confirmed that Chinese enterprises had halted purchases of U.S. agricultural products and China would temporarily not rule out the possibility of levying additional tariffs on imported U.S. agricultural products with deals made after Aug. 3. In addition, after the yuan falling below 7 against the dollar on Monday, said in a report by Bloomberg, the U.S. Treasury Department labeled China a currency manipulator, which has intensified trade tensions between these two countries. And the significant depreciation in yuan has also enhanced the import cost of soybean, rapeseed and rapeseed oil, etc.. Rapeseed meal prices continue to rises today buoyed by gains of meal futures and a tight supply outlook of rapeseed amid pending issues between China and Canada. However, rapeseed meal demand is seriously influenced by largely narrowed price spread with soybean meal when it is now in adequate inventory. Meanwhile, pulp pellet is in huge import, and meal demand is still curbed by the lingering African swine fever, which is more severe in South China. Therefore, rapeseed meal prices will have limited upward space. Buyers had better not drive up prices excessively.

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 128,000 tonnes, Fuzhou 32,000 tonnes, Shanghai 83,000 tonnes, Tianjin 1,000 tonnes, Dalian 22,000 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 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 growing import cost under 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 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; China said it would temporarily not rule out the possibility of levying additional tariffs on imported U.S. farm produce with deals made after Aug. 3, and related Chinese companies have halted purchases of U.S. farm produce, according to the National Development and Reform Commission and the Ministry of Commerce; US declares China a currency manipulator after the yuan breached the key 7-per-dollar level yesterday, according to Bloomberg; today meals on DCE further lift and spot soybean meal goes up 20-50 yuan/tonne on the rising tension of US-China trade relationship and the increase of soybean import cost due to the yuan weakness. 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 strongly fluctuate. Buyers had better maintain proper stock level upon low price, and not chase high if replenishment has been made.