Today (Sept. 27), the market for meals in China is shown as follows:

Soybean meal: US soybeans dropped fractionally yesterday, and meal futures also extend losses on the Dalian Commodity Exchange today. Spot soybean meal prices mostly fall by 10-20 yuan/tonne with lukewarm trading. Specifically, the price settles at 2,880-2,990 yuan/tonne in coastal regions (Tianjin 2,990, Shandong 2,970-2,990, Jiangsu 2,900-2,940, Dongguan 2,880-2,900, and Guangxi 2,910-2,920). US farmers are about to harvest their soybeans and put them on the market, and Chinese importers have made further purchases of US soybean amid a trade detente. And the hog population in China has been decimated by the lingering African swine fever. Meal prices have thus declined. But most domestic mills have made plans for downtime during the National Day holidays, especially those in North China. In the meantime, mills in Rizhao, Shandong, are curtailing production in order to meeting the requirements of environmental protection. And the inventory of soybean meal is predicted to fall as downstream companies are still replenishing ahead of the holidays. Therefore, soybean meal prices still remain resilient. In the short term, soybean meal market will follow futures to keep choppy and range-bound, and buyers can wait on the sidelines. Market participants can focus on the trade talks in early October. 

Imported rapeseed meal: Imported rapeseed meal declines in price today, of which it settles down 20-30 yuan/tonne at 2,280-2,390 yuan/tonne in coastal areas (Guangxi 2,300, down 30; Guangdong 2,390, down 30; Fujian 2,300, down 20). Domestic demand for meals remains dismal due to the African swine fever, and the increase of poultry feed can hardly make up for the decrease of hog feed. Besides, China and U.S. will hold a high-level negotiation in Washington, and Pres. Trump said that the United States was more likely to come to an agreement with China sooner than expected. Moreover, there is pressure from large supplies of new U.S. soybean after National Day. Therefore, rapeseed meal prices are curbed by all these factors above. However, some oil mills plan to halt the operation with the coming of National Day holiday. And rapeseed supply is getting tightened amid the issues between China and Canada, so rapeseed meal supply will keep falling with the decrease of rapeseed crush in coastal mills. Oil mills tend to prop up prices, which may limit the price declines. Hence, short-term rapeseed meal market may fluctuate at a narrow range. Buyers can stay on the sideline or buy on immediate demand.

Imported fishmeal: Imported fishmeal is quoted steadily today. Quotation at ports: it is priced quoted steadily at 9,000-9,200 yuan/tonne for Peruvian Standard SD with 65% protein content, 9,300-9,400 yuan/tonne for Thai SD with 67% protein content, 9,600-10,000 yuan/tonne for Japanese SD with 67% protein content, and 9,900-10,300 yuan/tonne for super SD with 68% protein content and 9,500-9,700 for old stocks. Stocks at port: Huangpu 130,000 tonnes, Fuzhou 38,000 tonnes, Shanghai 82,000 tonnes, Tianjin 1,000 tonnes, Dalian 14,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. FOB prices are stable from foreign merchants today: it is 1,090 USD/tonne for Peruvian Standard SD with 65% protein content and 1,290-1,310 USD/tonne for super SD with 68% protein content. Chilean Standard SD with 65% protein content is 1,100 USD/tonne, and super SD with 68% protein content at 1,300 USD/tonne. The demand growth for fishmeal in domestic aquaculture is not significant, and the hog feed consumption is also slow with decreasing hog amount under the spread of the ASF. Meanwhile, fishmeal inventory is at the high level at domestic ports. Therefore, fishmeal prices are subdued by the glut in the market. But the shipment turns better now with the coming of the National Day holiday, so holders are propping up prices. Overall, fishmeal price is predicted to stay stable in the near term.

Cottonseed meal: Today cottonseed meal stays stable when cottonseed price is high; cottonseed oil mills largely halt operation for the National Day and military parade. However, the market is weighted on as the demand is affected by the devastating outbreak of African swine fever and the upside down price of soybean meal from cottonseed meal. Besides, today meals on DCE further decline, and spot soybean meal mostly lowers 10-20 yuan/tonne. Before National Day holiday, the prices are likely to stay stable with some fluctuations, and after that, move in weak trend for the rising operation rates. Buyers can stay on the sideline. Buyers can just wait on the sidelines.