Today (Sept. 3rd), the market for meals in China is shown as follows:

Soybean meal: U.S. soybeans were unavailable for holidays yesterday and fall today after the trading recovers, but meal futures edge further higher on the Dalian Commodity Exchange. Spot bids for soybean meal go up steadily by 10-20 yuan/tonne in light trading. Specifically, the price settles at 3,000-3,110 yuan/tonne in coastal areas. (Tianjin 3,110, Shandong 3,040-3,070, Jiangsu 3,020-3,060, Dongguan 3,000-3,030, and Guangxi 3,030-3,060). Import cost remains high, which can be contributed to firm premiums of Brazilian soybeans and weak exchange rate of Chinese yuan. And feed prices follow to increase with recovering margins in poultry feeding and rising fish prices. Soybean meal prices are thus buoyed. But Argentina may begin to export soybean meal substantially to China. Besides, the contagious African swine fever has caused a nearly 40% decline year on year in hog feed consumption. And the demand from aquaculture in South China comes lower than expected, so that local mills have to suspend production again due to swelling soybean meal inventory. Therefore, soybean meal prices are curbed. The overall pattern may still fluctuate and stay strong, and buyers are suggested not to drive up prices excessively. 

Imported rapeseed meal: Imported rapeseed meal steadily edges higher in price today, of which it partially settles up 10 yuan at 2,440-2,500 yuan/tonne in coastal areas. (Guangxi not offered; Guangdong 2,450, up 20; and Fujian 2,440, up 40). Mills are lowering down operation rates due to tight rapeseed supply amid pending issues between Beijing and Ottawa, and soybean import cost is brought higher by sharp losses of Chinese yuan caused by the trade war; hence, rapeseed meal prices are buoyed to increase. However, hog herd in China is still being cut by the contagious African swine fever, and the feed consumption has thus declined by nearly 40% year on year. And the demand from aquaculture in South China is lower than expected. Therefore, rapeseed meal prices are weak to go upward as there is hardly improvement in terminal demand. Short-term market may stay strong with some fluctuations, and buyers are suggested to make appropriate replenishment 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 9,400-9,700 yuan/tonne for Peruvian Standard SD with 65% protein content, lower by 100-200 yuan at 9,600-10,000 yuan/tonne for Thai SD with 67% protein content, steadily at 10,000-10,400 yuan/tonne for Japanese SD with 67% protein content, and lower by 100 yuan at 10,400-10,600 yuan/tonne for super SD with 68% protein content and lower by 100 yuan at 10,000-10,300 for old products. Stocks at port: Huangpu 139,000 tonnes, Fuzhou 35,000 tonnes, Shanghai 89,000 tonnes, Tianjin 1,000 tonnes, Dalian 17,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. The prices keep steady with some declines in foreign markets today: it is 1,220 USD/tonne for Peruvian Standard SD with 65% protein content and 1,330 USD/tonne for super SD with 68% protein content, down by 20 USD respectively. 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 growth is slow from domestic aquaculture, and hog feed also has low demand for fishmeal due to a smaller hog herd under the impact of the ASF. And with continues arrivals of new Peruvian fishmeal, domestic market is in a glut with growing inventory so that holders have to cut down quotations under sales pressure. And domestic fishmeal market is thus restricted. Meanwhile, the foreign market also hovers at a low level. Therefore, short-term trend is predicted to be weak. 

Cottonseed meal: Today cottonseed meal stays stable due to the low operation rate and low cottonseed meal inventory. And today meals on DCE further rise slightly, and spot soybean meal is stable with a rise of 10-20 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. With the marketing of some new cottonseed, cottonseed meal is likely to fluctuate in narrow range before the massive marketing. Buyers are suggested to replenish properly upon low price and be prudent if chasing high.