Today (Jun 16), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures slid on Monday, as high good-to-excellent crop condition scores pointed to an abundant production prospect. But meal futures swing to rebound on China’s Dalian Commodity Exchange (DCE) today. Spot soybean meal prices fluctuate by 5-20 CNY/tonne to settle at 2640-2780 CNY/tonne in coastal regions. (Tianjin 2760, Shandong 2680-2700, Jiangsu 2640-2660, Dongguan 2640-2660, and Guangxi 2640-2660.) The market focus now shifts to weather and crop conditions in the U.S. crop belt. And tight supplies in Brazil have lifted soybean premiums, so that its crushing margins face losses in China if by meal and oil prices on the DCE. Domestic oil mills are propping up prices, which bolsters soybean meal market. However, China’s monthly soybean imports are forecast to surpass an average of 10 mln tonnes in June, July and August, and oil mills have been keeping operation rates at a very high level. The 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 in some regions is also affected by continuous rains in south China recently. And buyers are cautious now on fears of a second wave of the COVID-19 outbreak. Overall, short-term soybean meal market is predicted to keep range-bound. Buyers are suggested to buy dips for appropriate replenishment and remain cautious in chasing higher prices.

Imported rapeseed meal: Market expects a bumper US soybean harvest due to good crop condition. US soybean futures ended a little lower on Monday. Rapeseed meal futures on Zhengzhou Commodity Exchange edge down today, and rapeseed meal price in coastal regions settles down 10 CNY/tonne at 2,210-2,320, seeing light trading. Besides, it sees large arrival of soybeans from June to August, leading to a super high operation rate among oil plants. 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, buyers are lack of enthusiasm in entering market amid the concerns about a resurgence of coronavirus outbreak. Consequently, rapeseed meal is in light trading, causing a slight fall in meals price. In addition, Canadian rapeseed imports are still restricted amid tensions between Ottawa and Beijing, so rapeseed crushing plants reduce the operation. In this case, rapeseed stocks in Guangdong, Guangxi and Fujian have decreased to 26,500 tonnes, a decline of 18% compared with the previous week. Therefore, rapeseed meal price will not drop too much and probably fluctuate at a narrow range in the near term. FYI, 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 have 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 56,000 tonnes, Fuzhou 18,000 tonnes, Shanghai 32,000 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 with partial rise of 20-70 CNY/tonne today. Cottonseed price remains high. And the operation rate among cottonseed crushing mills is low due to cottonseed shortages. Thus, several factories raise the price, given the high cost and tight supply. But the operation rate among soyoil 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. Moreover, the cost performance of cottonseed meal price is low, restricting the demand. Therefore, short-term cottonseed meal price is likely to fluctuate at a narrow range and be strong on the whole.

(USD $1=CNY ¥7.08)