Today (Dec. 11), the market for meals in China is shown as follows:

Soybean meal: US and Chinese trade negotiators are taking steps to delay the additional tariffs on Chinese imports set on December 15th, and President Donald Trump will meet US trade negotiators on Thursday to discuss matters over a trade deal. US soybean futures extended gains last night on rising hope for a deal and soybean purchases made by China earlier this week. Most active contracts also trade further higher on the Dalian Commodity Exchange, except a slight decline in January contract. Spot soybean meal prices steadily fluctuates 10-30 yuan/tonne to attract some low-level purchases, especially upon low forward basis. Specifically, the price settles at 2,790-2,970 yuan/tonne today. (Tianjin 2,970, Shandong 2,975-3,000, Jiangsu 2,885-2,920, Dongguan 2,790-2,820, and Guangxi 2,840-2,860, Fujian 2,890-2,910.) Gross crush margins are handsome for imported soybeans on the DCE, and mills have signed a lot of June-September contracts upon a basis of -30 yuan/tonne . Meanwhile, soybean meal stocks continue to increase as aquaculture in south China has slack demand in winter, and investors are boosting positions in oil futures due to firm prices. But some mills still have limited soybean meal quantity for delivery, in addition to the rising amount in breeding hog and sow and the upcoming festival demand, so there is small space for price declines. Short-term soybean meal market is predicted to follow futures to fluctuate at a narrow range. Buyers are suggested to replenish for a proper stock on the dips and remain cautious in chasing after high prices. 

Imported rapeseed meal: Imported rapeseed meal price keeps stable today, of which it settles at 2,250-2,350 yuan/tonne (Guangxi 2,320; 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. Therefore, the rapeseed crush is predicted to drop further and oil mills will raise prices. However, China keeps purchasing imported 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. In consequence, these cases depress price increases of rapeseed meal. Buyers with adequate stock had better not chase up prices excessively.

Imported fishmeal: Imported fishmeal prices have all gone up 100 yuan/tonne today with certain negotiation space. Peruvian Standard SD with 65% protein content is 8,900-9,200 yuan/tonne; Peruvian higher-quality SD with 65% protein content is 9,200-9,600 yuan/tonne; Peruvian higher-quality SD with 67% protein content is 9,600-10,00 yuan/tonne; and Peruvian Super Prime SD with 68% protein content is 10,000-10,300yuan/tonne. Traders marginally raise quotations today due to poor fishing state in Peru and festival demand ahead of New Year’s Day. But the historical fresh high fishing quotas released by the Peruvian government is still an uncertain existence in the market, and the demand can hardly get improved in the short term as hog feed consumption is affected by the African swine fever, so there is little upward space for fishmeal prices. Overall, fishmeal market is predicted to keep steady to strengthen in the near term. Stocks at port: Huangpu 98,000 tonnes, Fuzhou 34,000 tonnes, Shanghai 41,000 tonnes, Tianjin 1,000 tonnes, Dalian 11,000 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 price of cottonseed meal is depressed by poor demand affected by soybean meal and cottonseed meal; lack of rigid demand under a slack season of aquaculture in Southern area. 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.