Today (Jun 22), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures rose last Friday, as China would ramp up U.S. farm products purchases after the Hawaii talks between high-level officials from both sides, a report by Bloomberg said. Meal futures expand their early gains on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up by 10-30 CNY/tonne to settle at 2640-2750 CNY/tonne in coastal regions. (Tianjin 2750, Shandong 2675-2700, Jiangsu 2650-2680, Dongguan 2640-2670, and Guangxi 2650-2670.) U.S. President Donald Trump said that the U.S. maintained a policy option of a complete decoupling from China, which added to further uncertainty between the two countries. Moreover, market participants also keep a close eye on weather conditions in the U.S. crop belt. And the cost of importing Brazilian soybeans have significantly risen due to firm premiums under tight supplies. In addition, large breeding enterprises are expanding their scale of hog breeding under the push by policies, which improves the demand outlook for feed. However, as monthly soybean arrivals are forecast to top an average of 10 million tonnes in June, July and August, oil mills picked up soybean crush to a new high of 2.14 mln tonnes last week. Weekly soybean meal stocks rose for a ninth consecutive week by 20% to 900,000 tonnes, and some mills are facing swelling inventories. Buyers are cautious now as the COVID-19 outbreak in Beijing could hit the catering industry again. As soybean crush is not more lucrative on the DCE with growing cost of imports, soybean meal prices may fluctuate to rebound moderately in the short run. Buyers are suggested to buy dips to keep safety stockpiles, but not to chase after excessively high prices.

Imported rapeseed meal: China plans to accelerate the purchase of U.S. Agricultural products after the Hawaii talks between top diplomats of the two countries last week, according to a report by Bloomberg. U.S. soybean futures closed higher on Friday. While today, rapeseed meal futures moderately rise on Zhengzhou Commodity Exchange, and rapeseed meal price in coastal regions settles up 20 CNY/tonne at 2,230-2,320, which attracts some transactions at lows. Besides, Canadian rapeseed imports are blocked amid tensions between Canada and China. Consequently, both the operation rate and rapeseed stocks among crushing mill are staying at historic lows, boosting meals price to rebound. However, monthly soybean arrivals between June and August are as high as 10 mln tonnes, soybean crush last week hit a fresh record high of 2.14 mln tonnes. And soybean meal stocks in coastal regions consecutively increased by 20% to 900,000 tonnes compared with the previous week. Consequently, some oil mills face with a stock overage. On the other hand, buyers take a wait-and-see attitude due to a hike on COVID-19 cases, so rapeseed meal is in light trading, which curbs the rises of meals price. FYI, buyers can make proper replenishment on the dips but not chase up price too excessively.

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 11,900-12,000 CNY/tonne, up 100 CNY/tonne from last Friday; Peruvian higher-quality SD with 67% protein content is 12,700-12,900 CNY/tonne, up 100 CNY/tonne from last Friday; and Peruvian Super Prime SD with 68% protein content is 13,600-13,800 CNY/tonne, up 100 CNY/tonne, up 100 CNY/tonne from last Friday.

Stocks of fishmeal held in leading Chinese companies are not at a high level, and they have also not a plan for placing an order. Due to the severe influence of the COVID-19, Peru announced to temporarily close the docks , 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 54,000 tonnes, Fuzhou 18,000 tonnes, Shanghai 30,000 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 1,400 USD/tonne for Peruvian Standard with 65% protein content and 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.

Fish catches in Peru: As of June 18^th (local time), fish catches in the first season of 2020 total 1,321,518 tonnes, taking up 54.77% of the total quota of 2.413 mln tonnes and with the fishing average at around 36, 000 tonnes per day and 1,091,482 tonnes remaining available.

Cottonseed meal: Cottonseed meal prices keep steady and weakly fluctuate by 10-50 CNY/tonne in some regions. With over 10 mln tonnes of soybean arrivals each month between June and August, soybean crush last week hit a fresh record high of 2.14 mln tonnes. And soybean meal stocks in coastal regions have increased to 900,000 tonnes for the consecutive ninth week, an advance of 20% from the previous week. Consequently, some oil plants face with a stock overage. Besides, the coronavirus is spreading in Beijing, which hammers catering services again. In this case, buyers are wary of jumping into the market. Moreover, the demand for cottonseed meal is restricted due to the low cost performance. Thus, cottonseed meal price is curbed by these factors. But cottonseed price remains high. Additionally, China plans to accelerate the purchase of U.S. farm goods to comply with the Phase One trade deal after the high-level talks between the two countries in Hawaii last week, according to a report by Bloomberg. As a result, U.S. soybean futures closed higher on Friday. Meals today climb up after high opens on Dalian Commodity Exchange, and spot soybean meal up by 10-30 CNY/tonne. Therefore, cottonseed meal market will not drop too much and likely fluctuate at a narrow range in the near term.

(USD $1=CNY ¥7.09)