Today (Jun 12), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures settled marginally higher on Thursday due to a relatively bullish report by the USDA. And traders booked profits after oils futures fell significantly on the back of a collapse in crude oil and U.S. stock markets, so meal futures moderately move higher on China’s Dalian Commodity Exchange today. Spot soybean meal steadily goes up by 10-20 CNY/tonne in tepid trading. The price is at 2630-2760 CNY/tonne in coastal regions. (Tianjin 2760, Shandong 2690-2710, Jiangsu 2655-2680, Dongguan 2630-2660, and Guangxi 2640-2670.) The tensions between the U.S. and China could continue to hang over the market, U.S. soybean crops will be in crucial summer growth period. Moreover, premiums for Brazilian soybeans keep rising, so that China’s cost of importing soybeans also jumps. The gross margins for importing Brazilian soybeans are only 121-175 CNY/tonne for shipments between July and October, in addition to 150-180 CNY/tonne of management costs, so imports are no more lucrative. However, China’s monthly soybean imports are forecast to surpass an average of 10 mln tonnes in June, July and August, and domestic oil mills are maintaining soybean crush at a very high level; hence, soybean meal stocks have been on an uptrend for weeks in coastal regions. And continuing heavy rains have swept eleven provinces in the southern part of China, so that aquaculture is affected in Guangdong and Guangxi provinces, and soybean meal shipments and deliveries have also been interrupted. Such bearish fundamentals are still limiting rises in meal prices. Overall, soybean meal prices are predicted to keep range-bound in the short run, but the decline will be capped by U.S.-China tensions. Buyers with adequate stocks are suggested not to chase after excessively high prices.

Imported rapeseed meal: U.S. soybeans rose slightly on Thursday due to a bullish report by the USDA. Rapeseed meal futures on Zhengzhou Commodity Exchange edge up today, but spot goods decline slightly on poor demand. Rapeseed meal price in coastal regions settles down 10-20 CNY/tonne at 2,230-2,340 with tepid trading. Besides, it sees large arrival of soybeans, leading to a super high operation rate among oil plants. Likewise, due to continuous rainstorm in South area, the aquaculture is also under impact in Guangdong and Guangxi, which affects rapeseed meal. Consequently, the light trading in rapeseed meal puts pressure on its price. In addition, Canadian rapeseed imports are still restrained amid tensions between Ottawa and Beijing, so rapeseed meal will not drop too much. Therefore, short-term rapeseed meal price will probably fluctuate at a narrow range. Buyers can make proper replenishment upon low and stable price.

Imported fishmeal: Imported fishmeal prices stay stable today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 11,500 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 11,700-11,800 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 12,600-12,800 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 13,500-13,700 CNY/tonne.

The fish catching is posting a good picture in Peru, and Chinese importers are likely to raise imports, so fishmeal traders at domestic ports now have lower enthusiasm in picking up prices. But currently, the majority of fishmeal companies in China have low fishmeal stocks, and domestic aquaculture is also recovering, which will increase the demand for fishmeal, so fishmeal enterprises are trying to stabilize prices. Overall, domestic fishmeal market is predicted to stay stable with slight adjustments in the short run.

Stocks at port: Huangpu 59,000 tonnes, Fuzhou 18,000 tonnes, Shanghai 33,000 tonnes, Tianjin 1,000 tonnes, Dalian 8,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports.

FOB quotes from foreign markets today: It is quoted steadily at 1,450 USD/tonne for Peruvian Standard with 65% protein content and at 1,680 USD/tonne for Peruvian super with 68% protein content. Chilean Standard with 65% protein content is quoted steadily at 1,490 USD/tonne, and super with 68% protein content at 1,720 USD/tonne.

Fish catches in Peru: As of June 10th (local time), fish catches in the first season of 2020 total 958,966 tonnes, taking up 39.74% of the total quota of 2.413 mln tonnes and with the fishing average at around 33, 000 tonnes per day and 1,454,034 tonnes remaining available.

Cottonseed meal: Cottonseed meal prices keep steady and rise by 20 CNY/tonne in some regions. As the cost remains too high and the operation rate stays at low levels, cottonseed meal supply gets tight among oil mills in Xinjiang, raising factories’ selling reluctance. Besides, U.S. soybeans rose slightly on Thursday as USDA report bulled the market. Moreover, oils significantly fell back caused by a plunge in global crude oil and US stocks, triggering profit-taking by buying oil and selling meal. Likewise, meals on Dalian Commodity Exchange moderately went up, and spot soybean meal steadily up by 10-20 CNY/tonne. Nonetheless, soybean arrivals from June to August will reach an average of more than 10 mln tonnes, which leads operating rate to remain super high, thereby seeing a consecutive rise in soybean meal stocks in coastal areas. Besides, the price of cottonseed meal has exceeded soybean meal, so some feed mills readjust the feed formula due to low cost performance. And the demand for cottonseed meal has been limited, seeing light trading. Therefore, short-term cottonseed meal price is still likely to fluctuate to stay strong before a detente in relations between U.S. and China.

(USD $1=CNY ￥7.10)