Today (Oct. 23), the market for meals in China is shown as follows:

Soybean meal: US soybeans rose last night, as China offered its state-owned crushers, privately owned crushers and foreign-owned crushers a quota of 10 mln tonnes free of additional tariffs to import US soybeans. But meal futures fall on the Dalian Commodity Exchange (DCE) today due to substantial US soybean imports. Spot soybean meal prices steadily drop by 10-30 yuan/tonne in light trading. Specifically, the price settles at 3,050-3,270 yuan/tonne. (Tianjin 3,270, Shandong 3,170-3,180, Jiangsu 3,130-3,150, Dongguan3,070-3,110, and Guangxi 3,070-3,080). DCE meal futures are in the technical adjustment phase after continued rises to high points, and soybean meal spot prices also fluctuate to adjust. However, livestock and poultry farming is quite profitable at present, bringing an enlargement in the farming scale. Along with the surge in hog prices, hog breeding now has sudden and huge profits, of which a purchased piglet can produce a margin of more than 2,100 yuan. Chinese government is vigorously encouraging farmers to recover hog production, and large farming plants in Northeast China have begun to take action. In this context, the number of hog may hopefully rebound. Soybean meal stocks are quite low at present, especially in North China, where mills have set strict delivery quantities. And its short-term price is expected not to drop very much, and will keep its strengthening trend. On account of the adjustment on the DCE, buyers can wait and see at the moment. 

Imported rapeseed meal: Imported rapeseed meal declines in price today, of which it settles down 20-40 yuan/tonne at 2,360-2,460 yuan/tonne in coastal areas (Guangxi 2,360, down 20; Guangdong 2,460, down 40; Fujian not offered). Domestic demand for meals is still poor due to the lingering African swine fever at present. And also, aquaculture is fading as the weather gets colder. Besides, monthly soybeans arriving at ports are likely to increase to over 8 mln tonnes in November and December. Therefore, rapeseed meal prices are dampened by these factors above. However, rapeseed meal inventory keeps falling due to the unsolved issues between China and Canada, which will limit the declines. Hence, short-term rapeseed meal market may mainly fluctuate strongly at a narrow range. Buyers can stay on the sideline or buy on immediate demand.

Imported fishmeal: Imported fishmeal price is stable today. It is 9,100-9,500 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, and10,100-10,500 yuan/tonne for super SD with 68% protein content. Stocks at port: Huangpu 100,000 tonnes, Fuzhou 32,000 tonnes, Shanghai 60,000 tonnes, Tianjin 1,000 tonnes, Dalian 5,000 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. It is hard to boost 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. This is bearish to the fishmeal market. But feed plants are still making replenishment, helping quicken the delivery at port, and there are no many fishmeal stocks at some domestic ports. Domestic traders with stocks in hand have stronger sales sentiment now, in addition to firm prices from Peru. These are all bullish to domestic market. On the whole, the market is predicted to steady with a strengthening trend in the near term. 

Cottonseed meal: Cottonseed meal price stays stable with several rises of 100 yuan/tonne today. The scale of poultry breeding expands due to the high margins, and there are excessive profits in pig breeding after a sharp rise in pig price. And also, some major breeding enterprises in Northeast China begin to resume the breeding under full support of government, so it is hopeful to raise hog herd from a low level and improve demand, which may support cottonseed meal market. However, the demand is affected by narrowed price spread between soybean meal and cottonseed meal. Additionally, China offers tariff-free quota for 10 mln tonnes of imported U.S. soybeans to state-owned crushers, privately owned crushers and foreign capital crushers. In consequence, meals on DCE today fall back due to large imports of U.S. Soybean, and spot soybean meal stays stable with a decline of 10-30 yuan/tonne. Therefore, cottonseed meal market is dragged down by all these factors. It is predicted that short-term cottonseed meal may go upward with fluctuations. Buyers are suggested to make proper replenishment on the dips and not to drive up prices excessively.