Soybean meal: U.S. soybean futures closed lower on the back of corn futures by a sharp loss of nearly 6% due to a forecast for higher-than-expected production in USDA’s report, but meal futures expand early gains on Dalian Commodity Exchange (DCE) as soybean planting acreage is substantially below the forecast in the U.S.. Spot bids for soybean meal go up by 30-50 yuan/tonne from yesterday to attract some low-level deal, but the trading remains tepid at high prices. Specifically, the price settles at 2,850-2,960 yuan/tonne in coastal areas. (Tianjin 2,960, Shandong 2,900-2,940, Jiangsu 2,900-2,930, Dongguan 2,900-2,930, Guangxi 2,900-2,910 and Fujian 2,850-2,900). U.S. soybean crops are now in the critical period of growth, which requires very favorable weather condition, especially under a sharp cut in planting acreage, and there may be more weather speculations later. Chinese importers have to pay higher cost now due to a weak yuan and a rise in the premiums of South American soybeans. And China and the United States are still in trade tensions. Soybean meal market is thus buoyed to move higher. But the market is crippled by the contagious African swine fever, making its upward pace far smaller than that of soybean oil in this round. As some traders close their positions in the arbitrage of buying oils and selling meals with the release of the bullish USDA report, meal futures slightly fill up gains on the DCE. On the whole, short-term soybean meal may follow futures to fluctuate to rebound, and buyers are suggested to replenish for stable stockpiles on the dips and not to drive up prices excessively. 

Imported rapeseed meal: Imported rapeseed meal rises in price today, of which it settles up 40-50 yuan at 2,500-2,570 yuan/tonne in coastal areas. (Guangxi not offered; Guangdong 2,500, up 50; and Fujian 2,510, up 50). Rapeseed supply is getting tightened due to pending issues between Beijing and Ottawas, and the market concerns have been intensified by an escalation of U.S.-China trade disputes; thus, rapeseed meal prices are buoyed to rebound. But rapeseed meal in feed has been substantially supplanted by soybean meal due to their largely narrowed price gap. And while soybean crush will increase in the next two weeks with huge arrivals at port, the demand for meals is still curbed by the lingering African swine fever. Therefore, there is still limited upward space for rapeseed meal. Buyers are suggested to make appropriate replenishment on the dips and not to chase up prices excessively. 

Imported fishmeal: Imported fishmeal price stays stable today with huge negotiating space. 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 10,700-11,100 yuan/tonne for super SD with 68% protein content. Stocks at port: Huangpu 130,000 tonnes, Fuzhou 32,000 tonnes, Shanghai 83,000 tonnes, Tianjin 1,000 tonnes, Dalian 21,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. Foreign merchants have quoted steadily today: it is 1,320 USD/tonne for Peruvian Standard SD with 65% protein content and 1,520 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. Domestic fishmeal consumption is slow due to tepid demand from aquaculture and smaller hog herd under the ASF. Meanwhile, fishmeal inventory keeps mounting higher at port with ongoing arrivals from Peru. Holders are under sales pressure so that domestic fishmeal market is restricted. But the market is receiving support from price inversions 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; today meals on DCE rise with high open, and spot soybean meal is up 30-50 yuan/tonne amid the lower-than-expected soybean acreage in USDA report. However, the demand is affected by the devastating outbreak of African swine fever especially in Sichuan, Hubei, Hunan, with the number of China's live hogs declining. Moreover, the narrow price spread between soybean meal and cottonseed meal curbs cottonseed meal market as well. Short-term prices are likely to go strong. Buyers had better maintain proper stock level upon low price, and not chase high.