Today (Jun 19), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures edged higher on Thursday on stronger than expected export demand and forecast that weather might not be so favorable across the U.S. crop belt. Meal futures move slightly lower on China’s Dalian Commodity Exchange today. Spot soybean meal prices steadily fluctuate by 10-20 CNY/tonne to settle at 2630-2740 CNY/tonne in coastal regions. (Tianjin 2740, Shandong 2655-2680, Jiangsu 2640-2660, Dongguan 2630-2670, and Guangxi 2640-2660.) With huge soybean imports forecast in June, July and August, China’s oil mills maintain extremely high operation rates now, and soybean meal stocks thus continue rising and even swell in some mills. Worse still, the COVID-19 outbreak in Beijing could again hit the demand for meat and aquatic products. However, China and the U.S. are still in escalating tensions. U.S. President Donald Trump said that the U.S. maintained a policy option of a complete decoupling from China. Moreover, 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 margins for the crushing are in the red if by meal and oil prices on the DCE. Overall, soybean meal market is predicted to 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 closed higher on Thursday amid improved exports and concerns over weather. While today, rapeseed meal futures edge down on Zhengzhou Commodity Exchange, and rapeseed meal price in coastal regions settles down 10-20 CNY/tonne at 2,210-2,300, seeing light trading. 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 pick up consecutively, some regions are overstocked. However, buyers take a wait-and-see attitude due to the spread of COVID-19, so rapeseed meal is in light trading, which curbs meals price. Besides, Canadian rapeseed imports are blocked amid tensions between Ottawa and Beijing. Consequently, both the operation rate and rapeseed stocks among crushing mill are staying at historic lows, boosting meals price. 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 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; Peruvian higher-quality SD with 67% protein content is 12,700-12,800 CNY/tonne, up 100 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 13,600-13,700 CNY/tonne, up 100 CNY/tonne.

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, which could slow down fishmeal exports. Therefore, domestic traders and enterprises hold a wait-and-see sentiment. 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 lower by 50 USD at 1,400 USD/tonne for Peruvian Standard with 65% protein content and down 50 USD at 1,630 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. The operation rate among crushing mills remains super high as it sees large arrivals of soybean between June and August, leading to a consecutive increase of soybean meal stocks.  And some oil plants even face with a stock overage. Besides, the coronavirus is spreading in Beijing, which is likely to strike the demand for meats and aquatic products again. Besides, the demand for cottonseed meal is restricted due to the low cost performance. Thus, cottonseed meal price is curbed by these factors. 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)