Today (Jun 15), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures rose last Friday. Meal futures swing to downside on China’s Dalian Commodity Exchange today on concerns over the demand for aquatic and meat products in the wake of the COVID-19 outbreak in Beijing. Spot soybean meal prices are declining in north China, but increasing in the south. The prices fluctuate by 10-30 CNY/tonne to settle at 2630-2780 CNY/tonne in coastal regions. (Tianjin 2780, Shandong 2690-2710, Jiangsu 2665-2690, Dongguan 2630-2660, and Guangxi 2640-2650.) China’s monthly soybean imports are forecast to surpass an average of 10 mln tonnes in June, July and August. Its weekly soybean crush totaled 2.05 mln tonnes last week and is predicted to set a record high of over 2.1 mln tonnes in coming two weeks. And weekly soybean meal stocks also increase by 13% to 750,000 tonnes in coastal regions, so that some mills even brace for swelling inventories. The aquaculture is also affected by continuous rains in south China recently. And buyers are cautious in purchases now on fears of a second wave of the COVID-19 outbreak, as new cases have been reported in Xinfadi agri-product wholesale market in Beijing since the weekend. However, tensions between China and the U.S. and the weather conditions for US soybean crops could become a hotspot in the market at any time. And premiums of Brazilian soybean keeps rising due to tight supplies, so that its prices are higher than U.S. soybean now. Brazilian soybean crushings are at loss in China now if calculated on DCE oil and meal prices, and Chinese importers even re-sold 2 cargoes soybeans to local crushers in Brazil last Friday. Overall, soybean meal market is predicted to trade at a narrow range and keep a strengthening trend, but may fluctuate to adjust in the short run due to the outbreak of the COVID-19 in China. Buyers can wait for low and stable prices to make appropriate replenishment.

Imported rapeseed meal: U.S. soybean futures ended a little higher on Friday. Rapeseed meal futures on Zhengzhou Commodity Exchange edge down today, and rapeseed meal price in coastal regions settles down 10 CNY/tonne at 2,220-2,330 with light trading. Besides, it sees large arrival of soybeans from June to August, leading to a super high operation rate among oil plants. The soybean crush totaled 2.05 mln tonnes last week and will likely set to a new high of 2.10 mln tonnes over the next two weeks. As soybean meal stocks in coastal regions rebound consecutively, some regions are overstocked. Likewise, due to continuous rainstorm in South area, the aquaculture is also under impact in some places. Besides, dozens of new coronavirus cases emerged from Xinfadi wholesale market in Beijing last weekend, raising concerns about a resurgence of the disease. Consequently, meals futures pare gains, and buyers are cautious in entering market, which curbs meals prices. 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, so Chinese importers are likely to raise imports. And the demand for fishmeal in feed production is limited, so that most feed plants do not make purchases in huge quantities. These together subdue domestic fishmeal market. But currently, the majority of fishmeal companies in China has low fishmeal stocks and tend to stabilize prices, which is positive to the market. 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.

Cottonseed meal: Cottonseed meal prices keep steady today. 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. Thus, cottonseed meal price is supported by these factors. But the operation rate among crushing mills remains super high with over 10 mln tonnes of soybean arrivals each month from June to August. In this case, soybean meal stocks in coastal regions rise by 13% to 750,000 tonnes compared with the previous week, and there are even bloated inventories in some regions. Likewise, dozens of new coronavirus cases emerged from Xinfadi wholesale market in Beijing since the weekend, raising concerns about a second wave of the disease. Accordingly, the demand for cottonseed meal has been limited, seeing light trading. Therefore, short-term cottonseed meal price is likely to fluctuate to adjust.

(USD $1=CNY ¥7.10)