Today (Aug. 26th), the market for meals in China is shown as follows:

Soybean meal: U.S. soybeans closed lower last Friday night after China announced to impose additional tariffs of 10 percent or 5 percent on approximately $75 billion of U.S. products, of which it would impose an extra 5% tariff on U.S. soybeans, and additional 10% duties on U.S. pork, wheat, corn and sorghum. On early Saturday morning, President Donald Trump announced to raise existing duties on $250 billion in Chinese products to 30% from 25% on Oct. 1, and the tariffs on another $300 billion in Chinese goods to 15% from 10%. Amid another escalation in U.S.-China trade frictions, meal futures open higher to rise sharply on the Dalian Commodity Exchange today. Spot bids for soybean meal follow to go up by 40-80 yuan/tonne to attract some low-level purchases, but the trading remains tepid at high levels. Specifically, the price settles at 2,970-3,060 yuan/tonne in coastal areas. (Tianjin 3,060, Shandong 2,990-3,050, Jiangsu 2,980-3,030, Dongguan 2,970-3,000, and Guangxi 3,000-3,030). The trade war has quickened the devaluation of the Chinese yuan, whose off-shore exchange rate even fell below 7.18 today. This has lifted the import cost. Besides, Brazilian soybeans see higher premiums on a tight supply outlook in the fourth quarter. And the demand for soybean meal is boosted as the spot market is stocking up for the Mid-autumn festival, sending the inventory to fall by 11% weekly to 790,000 tonnes. Therefore, soybean meal manage to widen its price rises today. The negative influence by the African swine fever is now briefly covered by the escalation in the trade disputes, so short-term soybean meal prices will probably fluctuate to edge higher. Buyers having replenished last week are suggested to just make some purchases on the dips, but not to drive up price excessively. 

Imported rapeseed meal: Imported rapeseed meal rises in price today, of which it settles up 10-20 yuan at 2,450-2,520 yuan/tonne in coastal areas. (Guangxi not offered; Guangdong 2,480, up 20; and Fujian 2,450, up 10). U.S. soybeans closed lower last Friday night after China announced to impose additional tariffs of 10 percent or 5 percent on approximately $75 billion of U.S. products, of which it would impose an extra 5% tariff on U.S. soybeans, and additional 10% duties on U.S. pork, wheat, corn and sorghum. On early Saturday morning, President Donald Trump announced to raise existing duties on $250 billion in Chinese products to 30% from 25% on Oct. 1, and the tariffs on another $300 billion in Chinese goods to 15% from 10%. Amid another escalation in U.S.-China trade frictions, the off-shore exchange rate of Chinese yuan has devalued significantly even below 7.18 today. And this has lifted the import cost. Meal futures open higher to post sharp gains in domestic market today. Meanwhile, rapeseed supply is getting tightened due to pending issues between Beijing and Ottawa, so the operation for rapeseed crush has also declined. Thereby, rapeseed meal inventory in coastal mills also continues falling, down 32,000 tonnes by 14% last week. This will continue boosting the rapeseed meal market. However, soybean crush will stay at a high level, while meal demand is still severely influenced by the lingering ASF; hence, rapeseed meal will see limited price rises. Buyers can purchase for appropriate stockpiles on the dips. 

Imported fishmeal: Imported fishmeal price stays stable today with some negotiating space. Quotation at ports: it is priced steadily at 9,600-9,700 yuan/tonne for Peruvian Standard SD with 65% protein content, 9,800-10,200 yuan/tonne for Thai SD with 67% protein content, 10,100-10,400 yuan/tonne for Japanese SD with 67% protein content, and 10,500-10,900 yuan/tonne for super SD with 68% protein content and 10,000-10,400 for old products. Stocks at port: Huangpu 135,000 tonnes, Fuzhou 34,000 tonnes, Shanghai 87,000 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 1,300 USD/tonne, and super SD with 68% protein content at 1,520 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, domestic inventory stays at a high level with continuous arrivals of new fishmeal from Peru. Holders have lowered down their quotations as they are under sales pressure and in a rush for cash, 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 50-150 yuan/tonne, due to the low operation rate and stocks. China’s Ministry of Finance announces on its website that it will apply new tariffs of between 5% and 10% on $75 billion worth of goods from the United States, including an additional tariff of 5% on soybean based on the previous 25% additional tariff, and an additional tariffs of 10% on pork, wheat, corn and sorghum. US soybean last Friday closed down. Trump tweets that duties on goods imported from China will be increased: on Oct. 1, tariffs on $250 billion China's products will rise from 25% to 30%; tariffs planned for Sept. 1 on $300 billion worth of Chinese goods will now be 15%, instead of 10%. And today meals on DCE surge with high open, and spot soybean meal lift 40-80 yuan/tonne accordingly. However, the market is under the wait-and-see attitude, and the the demand is affected by the devastating outbreak of African swine fever and the hog feed sales in July decline by almost 40% from the same period last year. Moreover, soybean meal is dropping away from cottonseed meal. Short-term prices are likely to go strong and buyers had better maintain proper stock level upon low price, and not chase high.