Today (Oct. 24), the market for meals in China is shown as follows:

Soybean meal: US soybeans fell on an accelerating crop harvest pace and the forecast for sustained improving weather, and meal futures are traded in a narrow range on the Dalian Commodity Exchange (DCE) today. Spot soybean meal prices steadily move ups and downs by 10-20 yuan/tonne with few purchases for spot contracts. There were a lot contracts for June to September 2020 signed upon the low price basis of M09+10 to M09+30 yuan yesterday, as the market was expected a huge increase in hog amount in the second half of 2020, and some purchases will probably be made today. Specifically, the price settles at 3,070-3,260 yuan/tonne today. (Tianjin 3,260, Shandong 3,180-3,200, Jiangsu 3,140-3,150, Dongguan3,070-3,100, and Guangxi 3,080-3,090). Hog feed posted a significant increase in September. And soybean meal stocks are quite low at present, especially in North China, where mills have set strict delivery quantities. Soybean meal was traded with 710,000 tonnes yesterday. Mills will thus continue to support the prices. But buyers turn cautious now as DCE meal futures are in the adjustment, and soybean meal spots also move ups and downs. Overall, before the stocks weigh down the market, soybean meal market will not drop sharply and will keep its strengthening trend. Buyers are suggested not to chase after excessively higher spot prices, but to buy appropriately on low-level forward basis. 

Imported rapeseed meal: Imported rapeseed meal declines in price today, of which it settles down 10-20 yuan/tonne at 2,350-2,450 yuan/tonne in coastal areas (Guangxi 2,360; Guangdong 2,450, down 10; Fujian not offered). The trade situation between China and U.S. is getting better, so rapeseed meal may be under pressure of imported U.S. soybean. Besides, the African swine fever is still spreading, and aquaculture is fading as the weather gets colder, so there is little improvement in demand. Hence, these factors will dampen rapeseed meal prices. However, the supply of rapeseed is still tightening under the pending issues between China and Canada, so rapeseed meal inventory shows a downward trend, which will limit the price declines. Hence, short-term rapeseed meal market may stay strong with fluctuations at a narrow range. Buyers can stay on the sideline or buy on immediate demand.

Imported fishmeal: Imported fishmeal price are mostly stable with some rises 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, with some rises of 100 yuan/tonne from yesterday. Stocks at port: Huangpu 100,000 tonnes, Fuzhou 31,000 tonnes, Shanghai 59,000 tonnes, Tianjin 1,000 tonnes, Dalian 6,000 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. There are few fishmeal arrivals at domestic ports, where total stocks are in the downtrend. Most manufacturers have tight supplies now and are stalling on the sales. Hence, fishmeal prices are higher today. But there are some hurdles on its upward space. 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. 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 some rises of 30-70 yuan/tonne and individual declines of 50 yuan/tonne today. Oil mills in Xiajin halt the operation due to environmental protection, so the supply of cottonseed oil declines. In addition, the production pig feed obviously increased in September. Pig stocks are expected to rebound from the bottom, and demand may be improved, so cottonseed meal market is supported by these factors. But cottonseed meal market is dragged down by less demand due to a narrowed price gap between soybean meal and cottonseed meal, so individual prices are declining. It is predicted that short-term cottonseed meal may go upward with fluctuations. Buyers can make proper replenishment on the dips and not chase up prices too high.