Today (Sept. 5th), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean ticked higher yesterday on purchase order from Mexico and strong crude oil and stock markets, but meal futures post broad losses on the Dalian Commodity Exchange today as trade representatives from China and the United States had a phone talk today where both sides agreed to hold another round of negotiations in Washington in earlier October and start to embark on consultations from mid-September in preparation for substantial progress in the meeting. Spot bids for soybean meal drop by 20-50 yuan/tonne in light trading. Specifically, the price settles at 2,950-3,060 yuan/tonne in coastal areas. (Tianjin 3,060, Shandong 2,990-3,030, Jiangsu 2,980-3,020, Dongguan 2,950-2,960, and Guangxi 2,950-2,980). China has allowed the imports of soybean meal, rapeseed meal and sunflower meal from Russia. Besides, the African swine fever (ASF) has already slashed hog feed consumption and soybean crush has stay stubbornly high in these two weeks; thus, soybean meal inventory has seen a weekly increase of 6% to 770,000 tonnes and mills in South China are urging buyers to pick up goods. In the meantime, U.S. soybean is expected to be harvested and sold late this month. These are all negative soybean meal prices. The price declines may be small now thanks to high import cost under rising premiums of Brazilian soybeans. Overall, soybean meal market is predicted to fluctuate and adjust with the resumption of trade talks and the forthcoming sales of U.S. soybeans. Buyers can wait for the moment.

Imported rapeseed meal: Imported rapeseed meal steps down in price today, of which it settles down 30-50 yuan at 2,390-2,500 yuan/tonne in coastal areas. (Guangxi not offered; Guangdong 2,450, stable; and Fujian 2,440, stable). A detente is still possible in trade frictions between China and the United States. Meanwhile, when soybean crush has surged to a very high level in recent weeks, meal consumption is still subdued by the contagious ASF; thus, meal prices are curbed. But rapeseed meal price now is also supported by its tight supply outlook due to pending issues between Canada and China. Overall, short-term rapeseed meal price may extend narrow fluctuations to adjust, and buyers can wait for the moment. 

Imported fishmeal: Imported fishmeal price stays stable to edge lower today with some negotiating space. Quotation at ports: it is priced lower by 100-200 yuan/tonne at 9,300-9,700 yuan/tonne for Peruvian Standard SD with 65% protein content, lower by 200-300 yuan at 9,400-10,000 yuan/tonne for Thai SD with 67% protein content, lower by 200 yuan at 9,800-10,300 yuan/tonne for Japanese SD with 67% protein content, and lower by 200 yuan at 10,200-10,500 yuan/tonne for super SD with 68% protein content and lower by 200 yuan at 9,800-10,300 for old products. Stocks at port: Huangpu 141,000 tonnes, Fuzhou 36,000 tonnes, Shanghai 89,000 tonnes, Tianjin 1,000 tonnes, Dalian 16,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. The prices keep steady 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. 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. Therefore, short-term trend is predicted to be weak. 

Cottonseed meal: Today cottonseed meal stays stable due to the small marketing of new cottonseed, the low operation rate and low cottonseed meal inventory. 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. Besides, today Chiefs of China-U.S. Comprehensive Economic Dialogue held a phone conversation and agreed to hold the trade consultations in early October in Washington. Working groups of the two sides will conduct consultations in earnest in mid-September to make full preparations for the high-level talks to achieve substantial progress. Meals on DCE fall back in wide range, and spot soybean meals drop 20-50 yuan/tonne. With the marketing of some new cottonseed, cottonseed meal is likely to fluctuate in narrow range before the massive marketing, and then have the risk of falling back. Buyers should be prudent if chasing high.