Today (Oct. 18), the market for meals in China is shown as follows:

Soybean meal: The market expected that the USDA might continue to trim production estimates in its November report, and the relationship between China and the US pointed to a good prospect as a Bloomberg report said that economic and trade teams from the two nations were maintaining close communication to negotiate on the specific text of the agreement. So US soybeans closed higher last night. And meal futures also open higher to rise on the Dalian Commodity Exchange today. Spot soybean meal prices go up by 10-30 yuan/tonne to attract some low-level purchases. Specifically, the price settles at 3,000-3,160 yuan/tonne. (Tianjin 3,160, Shandong 3,100-3,110, Jiangsu 3,040-3,080, Dongguan 3,000-3,060, and Guangxi 3,030-3,050). US soybean prices are supported by a change in the pattern of supply and demand, and soybean import cost is also supportive of domestic soybean meal prices. Moreover, soybean meal stocks have declined by 520,000 tonnes in China, so mills now have little pressure and some northern mills even go into tight supplies. In the demand side, farmers are making handsome profits in animal and poultry breeding, and local governments are striving for resuming hog production, which has significantly narrowed the decline in hog amount last month. Unless a sharp rise in its stocks, soybean meal will probably fluctuate at a narrow range and maintain its strong trend in the short term. But China is going to buy substantial US agricultural products, and US soybeans will face the seasonal pressure of harvests and sales. In addition, as mills have picked up their capacity utilization gradually, soybean meal stocks may also increase. And domestic buyers turn conservative amid continued rises of soybean meal prices, which will keep the upward space in check. Buyers are suggested to make appropriate replenishment on the dips and remain cautious in chasing after high prices. 

Imported rapeseed meal: Imported rapeseed meal rises in price today, of which it settles up 10-20 yuan/tonne at 2,370-2,480 yuan/tonne in coastal areas (Guangxi 2,370, up 20; Guangdong 2,480, stable; Fujian not offered). The rapeseed supply is getting tightened, for there is no sign of a detente in the relations between China and Canada, so oil mills are likely to reduce the crush and prop up prices. But China will buy plenty of US agricultural products, and US soybeans are under the pressure of harvesting and marketing, and it takes some time to recover hog herd due to the lingering African swine fever. Therefore, the rises of rapeseed meal prices are still limited and short-term rapeseed meal will mainly fluctuate strongly at a narrow range. Buyers can make proper replenishment on the dips and remain cautious in chasing up prices.

Imported fishmeal: Imported fishmeal price is stable today. It is9,100-9,500 yuan/tonne for Peruvian Standard SD with 65% protein content, 9,400-9,800 yuan/tonne for Thai SD with 67% protein content, 9,900-10,000 yuan/tonne for Japanese SD with 67% protein content, and 10,100-10,400 yuan/tonne for super SD with 68% protein content. Stocks at port: Huangpu 108,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 65,000 tonnes, Tianjin 1,000 tonnes, Dalian 8,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. FOB prices from foreign merchants today: it is 1,110 USD/tonne for Peruvian Standard SD with 65% protein content and 1,310-1,330 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. Feed plants are still making replenishment, helping quicken the delivery at port, and there are no many fishmeal stocks at domestic ports. Domestic traders with stocks in hand have stronger sales sentiment now, in addition to firm prices from Peru, which is bullish to domestic market. But it is hard to improve the demand for fishmeal in domestic aquaculture industry, and due to the influence of the African swine fever, the consumption of feed is also slow. On the whole, the market is predicted to steady in the near term. 

Cottonseed meal: Cottonseed meal price stays stable with several declines of 30 yuan/tonne today. The cottonseed meal price are depressed by the rising operation rate, the spread of African swine fever, the demand affected by narrowed price gap between soybean meal and cottonseed meal, and slow pace of delivery in some factories. However, meals on DCE today open higher and rise up, and spot soybean meal is up 10-30 yuan/tonne. It helps limit the declines of cottonseed meal prices. It is predicted that short-term cottonseed meal will fall back with fluctuations but may not be too much. Buyers can buy on immediate demand. In addition, Sino-US trade delegations are maintaining close communication on the text of agreement, which has a good prospect in bilateral trade relations, according to Bloomberg. And buyers can keep a close eye on the latest development of negotiation.