Soybean meal: Chief of the Chinese delegation spoke by phone with trade representatives of the United States on Tuesday and both parties agreed to speak again via phone within two weeks. And U.S. President postponed his deadline for 10% tariffs on remaining Chinese imports till December 15, for the sake of blunting the impact on U.S. Christmas sales. On signs of easing tensions in the U.S-China trade frictions, U.S. soybean rose last night, but meal futures fall on the Dalian Commodity Exchange after China’s yuan jumped sharply higher. Spot bids for soybean meal drop by 30-50 yuan/tonne from yesterday, but the declines is narrowing down. There are some purchases at low level, but the total trading remains thin. Specifically, the price settles at 2,830-2,900 yuan/tonne in coastal areas. (Tianjin 2,900, Shandong 2,850-2,900, Jiangsu 2,860-2,890, Dongguan 2,850-2,890, Guangxi 2,880-2,900 and Fujian 2,830-2,900). Mills are boosting their utilization rate, while the demand for meals is little likely to see much improvement under the lingering African swine fever. Some mills in Sichuan and Guangdong have again suspended their production due to swelling soybean meal inventory. But 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. And there is little chance that trade disputes can be settled in a short period. Therefore, soybean meal will have little downside space and will stay strong with fluctuations. Buyers can wait for low and stable prices to make proper replenishment and remain cautious in driving up prices. 

Imported rapeseed meal: Imported rapeseed meal declines in price today, of which it settles down 40-50 yuan at 2,450-2,500 yuan/tonne in coastal areas. (Guangxi not offered; Guangdong 2,450, down 50; and Fujian 2,460, down 40). Rapeseed meal in feed has been substantially supplanted by soybean meal due to their largely narrowed price gap. And soybean crush will keep increasing due to huge arrivals of soybean at port under better crush margins, whilst the demand for meals is little likely to see much improvement under the lingering African swine fever. Therefore, rapeseed meal market is weighed down. But rapeseed supply is getting tightened due to pending issues between Beijing and Ottawas, and there is still uncertainty in U.S.-China talks; hence, rapeseed meal prices are propped up. Overall, the market is predicted to stay strong with fluctuations, and buyers can wait for low and stable prices to make replenishment in small batch. 

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 10,300-10,900 yuan/tonne for super SD with 68% protein content and 10,700-11,100 for new products. Stocks at port: Huangpu 130,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 83,000 tonnes, Tianjin 1,000 tonnes, Dalian 21,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. The price steadily edges lower today: it is 1,320 USD/tonne for Peruvian Standard SD with 65% protein content and lower by 20 USD at 1,500 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, and some holders are propping up prices out of minimizing losses. Overall, fishmeal market is predicted to stay stable with slight declines in the short run.

Cottonseed meal: Today cottonseed meal stays stable when 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; the price spread between soybean meal and cottonseed meal is narrow. Moreover, the US-China trade tension eases as U.S. chief trade negotiators hold phone talks on Tuesday, agreeing to hold another phone conversation in two weeks, and US announce that the 10% tariff should be delayed to December 15 for certain articles from China, avoiding an impact on holiday shopping. And meals on DCE decline on the RMB's strength, and spot soybean meal falls 30-50 yuan/tonne. However, the cottonseed meal market is supportive of the low operation rate and low cottonseed meal inventory. Short-term cotton meal is likely to greatly fluctuate, and buyers are suggested to take a hand-to-mouth buying strategy or stay on the sideline for the present.