Today (Dec. 10), the market for meals in China is shown as follows:

Soybean meal: Sources said Chinese private enterprises were granted a quota of at least 1 million tonnes for US soybeans under tariff exemptions, and due to good crush margins, China on Monday rapidly purchased 6-8 cargoes of US PNW soybeans for Jan and Jan-Feb shipment and at least 2 cargoes from the US Gulf, with a total of 500-600,000 tonnes. US soybean futures were buoyed to extend gains last night. But meal futures open lower to fall further on the Dalian Commodity Exchange today due to improving trade relations between the two countries. Spot soybean meal prices are down by 10-30 yuan/tonne. Specifically, the price settles at 2,800-2,970 yuan/tonne today. (Tianjin 2,970, Shandong 2,990-3,010, Jiangsu 2,870-2,920, Dongguan 2,800-2,830, and Guangxi 2,840-2,860, Fujian 2,890-2,910.) Soybean crush remains lucrative on the DCE, so China will actively continue to make imports. Aquaculture in south China has slack demand in winter, there are alternative meal imports arriving at domestic ports substantially, and soybean meal stocks will continue to increase with higher soybean crush. In addition, funds are buying up on oil futures due to huge rises. Therefore, soybean meal prices are curbed. But price declines in soybean meal are limited by rising amount of hog and sow in breeding, and the upcoming festival demand. Short-term soybean meal market may follow futures to fluctuate at a narrow range, and buyers can wait for low and stable prices to make appropriate replenishment. 

Imported rapeseed meal: Imported rapeseed meal rises in price today, of which it settles up 20-30 yuan/tonne at 2,220-2,230 yuan/tonne in coastal areas (Guangxi 2,280, stable; Guangdong not offered; Fujian not offered). Some factories have no rapeseed arriving at ports due to the tight supply of rapeseed under tensions between China and Canada. In consequence, the rapeseed stock is trending down, and oil mills are more willing to raise prices. However, China keeps purchasing soybeans due to the good crush margin of futures. But the demand from aquaculture in South China has entered into an off-season, and mixed meals arrive at ports in huge quantity. Thus, the price increases of rapeseed meal are limited by these factors. Buyers had better not chase up prices excessively.

Imported fishmeal: Imported fishmeal prices stay stable today with certain negotiation space. Peruvian Standard SD with 65% protein content is 8,900-9,100 yuan/tonne; Peruvian higher-quality SD with 65% protein content is 9,200-9,500 yuan/tonne; Peruvian higher-quality SD with 67% protein content is 9,600-9,900 yuan/tonne; and Peruvian Super Prime SD with 68% protein content is 9,900-10,200 yuan/tonne. Chinese traders are bearish due to quick progress in fish catches in Peru and the uncertainty in its historical high quotas this season. And the demand can hardly get improved in the short term as hog feed consumption is affected by the African swine fever. The support for the fishmeal market now is the festival demand underway in the run up for the New Year’s Day. Overall, fishmeal market is predicted to keep steady to strengthen in the near term. Stocks at port: Huangpu 97,000 tonnes, Fuzhou 34,000 tonnes, Shanghai 41,000 tonnes, Tianjin 1,000 tonnes, Dalian 10,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports. FOB prices from foreign merchants today: it is quoted steadily at 1,130 USD/tonne for Peruvian Standard with 65% protein content and 1,380 USD/tonne for Peruvian super with 68% protein content. Chilean Standard with 65% protein content is 1,100 USD/tonne, and super with 68% protein content at 1,360 USD/tonne.

Cottonseed meal: Cottonseed meal price stays stable with some declines of 50 yuan/tonne today. The demand of cottonseed meal is affected by narrow price gap between soybean meal and cottonseed meal, and cottonseed meal is also lack of rigid demand under a slack season of aquaculture in South China. In addition, it was rumored that Chinese private firms had been offered at least 1 million tonnes of U.S. Soybeans in new tariff waivers. Due to the good crush margins, China on Monday bought 6-8 cargoes of US West soybeans for shipment in January and February and at least 2 cargoes of US Gulf soybeans, which totaled more than 500,000 tonnes. The tensions between two countries are easing, which bears domestic market. As a result, meals on DCE today fall back with low opens, and spot soybean meal drops by 10-30 yuan/tonne. On the other hand, the price declines of cottonseed meal are limited as cottonseed price remains high and fluctuate strongly; oil mills in some regions halt the operation for environmental protection. It is expected that short-term cottonseed meal may fluctuate at a narrow range. With traders stocking up cottonseed meal before Spring Festival, it may be hopeful to rally mildly. Buyers can make proper replenishment upon low and stable prices.