Today (Aug. 29th), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean closed higher last night on worries of early frost, and meal futures also open higher to expand gains on the Dalian Commodity Exchange today. Spot bids for soybean meal go up by 20-40 yuan/tonne to attract some low-level trading, but the trading is a little at high levels. Specifically, the price settles at 2,970-3,080 yuan/tonne in coastal areas. (Tianjin 3,080, Shandong 3,000-3,060, Jiangsu 2,970-3,050, Dongguan 2,980-3,000, and Guangxi 3,000-3,040). Brazil?soybean?premiums rise due to U.S.-China trade war, and soybean import has increased greatly as the Chinese yuan keeps sliding and the ocean freight from Brazil to China has risen to 43 USD/tonne. Besides, farmers have recovered layer breeding, and also broiler. Fish prices is rallying due to a surge in pork prices, so that the demand for meals is also improving and soybean meal has also picked up its delivery. In addition, China and the United States are less likely to reach a deal in the short term. And the market has shown a sign for the speculation on the impact of the frost on U.S. soybean crops. Mills post strong desire to prop up prices, so soybean meal prices is buoyed to fluctuate to go strong for the moment. But the price rise is still capped by the lingering African swine fever (ASF), which has caused a nearly 40% decline in hog feed consumption. Buyers are suggested to make appropriate replenishment on the dips, but not to drive up prices 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 2,470, up 10; and Fujian 2,450, up 20). Rapeseed is in tight supply because Beijing and Ottawa have yet settled their issues, so that mills have no choice but to lower down rapeseed crush. Besides, the Chinese yuan has dropped drastically due to trade disputes, and the import cost of Brazilian soybean is further lifted by its tight supply outlook and rising ocean freight. All these factors have sent a boost to rapeseed meal prices. But feed plants have cut down the mix of rapeseed meal to the lowest point. Moreover, soybean crush is predicted to go above 1.80 mln tonnes both this week and next week, and the overall demand for meal is still dismal and is hardly improving under the ASF. Therefore, rapeseed meal prices show weak upward impetus. Overall, short-term market is predicted to stay strong, and buyers are suggested to make appropriate replenishment on the dips, but not to drive up prices excessively. 

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 137,000 tonnes, Fuzhou 34,000 tonnes, Shanghai 88,000 tonnes, Tianjin 1,000 tonnes, Dalian 18,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. The prices keep steady in foreign markets today: it is 1,260 USD/tonne for Peruvian Standard SD with 65% protein content and 1,370 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. The demand for fishmeal from aquaculture remains small, so is the hog herd, which has been cut strongly by the ASF. And continuous arrivals of new fishmeal from Peru has outweighed shipment at ports, so that inventory keeps increasing, to 283,000 tonnes so far, and holders are also under sales pressure. Therefore, fishmeal prices are thus restricted. But there is still support from growing import cost with the substantial devaluation of Chinese yuan. Overall, short-term fishmeal market is predicted to stay stable with a weak trend.

Cottonseed meal: Today cottonseed meal stays stable due to the low operation rate and low cottonseed meal inventory. And today meals on DCE go up with high open, and spot soybean meal lift 20-40 yuan/tonne. However, the demand is affected by the devastating outbreak of African swine fever and the hog feed sales decline by almost 40% year on year. Moreover, soybean meal is dropping away from cottonseed meal. Short-term prices are likely to fluctuate with strong trend and buyers may make small replenishment upon low prices if out of stock., and not chase high.