Today (Aug. 21st), the market for meals in China is shown as follows:

Soybean meal: U.S. soybeans closed with gains as the USDA in a weekly crop progress report rated 1 percentage point lower of U.S. soybeans in good-to-excellent condition, and meal futures also edge up on the Dalian Commodity Exchange today. Spot bids for soybean meal follow to go up by 10-20 yuan/tonne to attract some low-level purchases, but the total trading remains tepid. Specifically, the price settles at 2,840-2,920 yuan/tonne in coastal areas. (Tianjin 2,920, Shandong 2,850-2,890, Jiangsu 2,870-2,910, Dongguan 2,840-2,870, Guangxi 2,850-2,870 and Fujian 2,850-2,880). The amount of layers posted a month-on-month increase in July, and their laying rate also recovers as the weather is getting cooler, chicken in farming has thus gone up by 8% in July, according to statistics by Cofeed. Besides, the demand is boosted as the spot market is stocking up for the Mid-autumn festival, so both the trading and the delivery are improving in recent few days. Therefore, soybean meal prices have received some support. However, the sales volume of hog feed declined by nearly 40% year on year in July due to the rampant African swine fever (ASF). And due to better crush margins of South American soybeans, Chinese importers bought at least 34 cargoes for September and October shipments last week and about 10 cargoes for the first two days this week. Both these factors are bearish to price rises. Before the completion of the weather speculation on U.S. soybean crops, soybean meal prices may fluctuate to go strong, and buyers are suggested to make appropriate replenishment on the dips, but not to drive up prices excessively. 

Imported rapeseed meal: Imported rapeseed meal steadily edges higher in price today, of which it settles up 10 yuan partially at 2,410-2,480 yuan/tonne in coastal areas. (Guangxi not offered; Guangdong 2,410, up 10; and Fujian 2,410, stable). Mills have lowered down their rapeseed crush sharply due to a tight outlook of rapeseed supply amid pending issues between Beijing and Ottawa. This is a boost to the rebound of rapeseed meal prices. But the share of rapeseed meal in feed has been substantially supplanted by soybean meal due to their largely narrowed price gap. Besides, soybean arrival are also predicted to be substantial at domestic ports, whilst there is no practical improvement in the demand for meals under the contagious ASF, which has also been reported in some regions of Jiangsu recently. Therefore, there is limited space for price rises. Buyers are suggested to replenish appropriately on the dips, but not to drive up prices excessively. 

Imported fishmeal: Imported fishmeal price stays stable to edge lower today with some negotiating space. Quotation at ports: it is priced steadily at 9,700-9,900 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 10,700-10,900 yuan/tonne for super SD with 68% protein content and down by 100-300 yuan at 10,000-10,500 for old products. Stocks at port: Huangpu 134,000 tonnes, Fuzhou 34,000 tonnes, Shanghai 86,000 tonnes, Tianjin 1,000 tonnes, Dalian 19,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. The prices keep steady in foreign markets today: it is 1,270 USD/tonne for Peruvian Standard SD with 65% protein content and 1,380 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. Due to a slowdown in demand growth from aquaculture and a smaller hog herd subject to the African swine fever, fishmeal consumption is limited. Meanwhile, the market is in a glut and the inventory stays at a high level at ports with continuous arrivals of new fishmeal from Peru. As holders are under sales pressure, fishmeal prices are also restricted. Overall, short-term fishmeal market is predicted to stay stable with a weak trend.

Cottonseed meal: Cottonseed meals today are stable with some rises of 50-100 yuan/tonne, due to the low operation rate and low cottonseed meal inventory. And today meals on DCE see a slight rise, and spot soybean meal lift 10-20 yuan/tonne accordingly. However, the demand is affected by the devastating outbreak of African swine fever. Moreover, soybean meal is dropping away from cottonseed meal. Short-term prices are likely to fluctuate with strong trend and buyers had better maintain proper stock level upon low price, and not chase high.