Today (Jun 18), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures rose on Wednesday, as China was carrying out under a Phase 1 trade deal and had purchased some $10 billion of U.S. products thus far. But meal futures swing slightly on China’s Dalian Commodity Exchange (DCE) today. Spot soybean meal prices fluctuate by 5-20 CNY/tonne to settle at 2640-2740 CNY/tonne in coastal regions. (Tianjin 2740, Shandong 2670-2690, Jiangsu 2665-2680, Dongguan 2640-2660, and Guangxi 2650-2660.) Monthly soybean arrivals at China’s ports are expected to exceed 10 mln tonnes in June, July and August. Domestic oil mills are maintaining weekly soybean crush high at over 2 mln tonnes, and soybean meal stocks thus continue rising and even swell in some mills. Also, buyers are cautious now with the resurgence of the COVID-19 in Beijing, which again hits the catering businesses. However, market participants also keep a close eye on weather conditions in the U.S. crop belt. And the cost of importing Brazilian soybeans are higher due to rising premiums under tight supplies, so the net margins for the crushing are in the red if by meal and oil prices on the DCE. In a hybrid of the bull and the bear, soybean meal will keep trading at a narrow range in the short run. Buyers are suggested to buy dips for safety stockpiles and remain cautious in chasing higher prices.

Imported rapeseed meal: US soybean futures ended higher on Wednesday as China fulfilled the trade deal. While today, rapeseed meal futures on Zhengzhou Commodity Exchange increase, and rapeseed meal price in coastal regions settles up 10 CNY/tonne at 2,220-2,320, seeing light trading. Besides, Canadian rapeseed imports are still restricted amid tensions between Ottawa and Beijing, so meals price is bolstered due to rapeseed shortages. However, it sees large arrival of soybeans each month from June to August, leading to a super high operation rate. 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 in wait-and-see mood amid concerns over resurgent coronavirus. Consequently, rapeseed meal is in light trading, curbing meals price. Therefore, short-term rapeseed meal price will probably fluctuate at a narrow range. FYI, buyers can make proper replenishment upon low and stable price.

Imported fishmeal: Imported fishmeal: Imported fishmeal prices stay stable with a partial rise 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 11,800-12,000 CNY/tonne, up 100-200 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 above offers from several enterprises are relatively low compared to others.

Stocks of fishmeal held in leading Chinese companies are not at a high level. Due to the severe influence of the COVID-19, Peru announced to temporarily close the docks from June 14, according to local media. Insiders tend to wait and some enterprises have slightly raised the prices due to tight supplies in hand. However, recent rains have slowed down aquaculture activities in China. This affects the feed demand for fishmeal, and some feed plants are reluctant to make bulk purchases. Overall, domestic fishmeal market is predicted to stay stable with slight adjustments in the short run.

Stocks at port: Huangpu 55,000 tonnes, Fuzhou 18,000 tonnes, Shanghai 31,000 tonnes, Tianjin 1,000 tonnes, Dalian 7,000 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 16th (local time), fish catches in the first season of 2020 total 1,226,296 tonnes, taking up 50.82% of the total quota of 2.413 mln tonnes and with the fishing average at around 35, 000 tonnes per day and 1,186,704 tonnes remaining available.

Cottonseed meal: Cottonseed meal prices keep steady today. Monthly soybean arrivals between June and August are projected to be upwards of 10 mln tonnes, which leads weekly soybean crush to remain above 2 mln tonnes. Consequently, soybean meal stocks increase continually, and some oil plants even face with a stock overage. Besides, the coronavirus is spreading in Beijing, hitting food services again. And the demand for cottonseed meal is restricted due to the low cost performance, curbing its price. However, cottonseed is pricey and the operation rate among crushing mills stays at low levels, so cottonseed meal supply is tight. Driven by high cost and ample supply, cottonseed meal price is resilient tentatively and likely fluctuate at a narrow range in a short term.

(USD $1=CNY ¥7.09)