Today (Jun 24), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures declined on Tuesday as favorable weather improved the potential for high yields, and meal futures continue to drop on China’s Dalian Commodity Exchange today. Spot soybean meal prices steadily go down by 10-20 CNY/tonne to sit at 2640-2730 CNY/tonne in coastal regions. (Tianjin 2730, Shandong 2665-2700, Jiangsu 2650-2680, Dongguan 2640-2670, and Guangxi 2650-2670.) With tremendous soybean arrivals between June and August, Chinese oil mills are seeking to maintain weekly soybean crush at a fresh high level of 2.15 mln tonnes. Soybean meal stockpiles thus increased by 20% weekly to 900,000 tonnes, and some mills even have to suspend production due to swelling inventories. But the demand prospect for soybean meal is positive, as domestic large groups have expanded their hog breeding under the push of preferential policies. Meanwhile, the cost of importing Brazilian soybeans has been lifted by local tight supplies. And U.S. soybean crops are in the stage of growth, which could easily trigger weather speculation in the market. Besides, uncertainty remains in relations between China and the United States. Hence, soybean meal market is predicted to have little downside space and will probably keep range-bound with a strengthening trend. Buyers can wait to buy dips appropriately.

Imported rapeseed meal: U.S. soybean futures closed lower on Tuesday as nice weather boosted an expectation of bumper harvest. Rapeseed meal futures today edge down on Zhengzhou Commodity Exchange, and rapeseed meal price in coastal regions settles down 10 CNY/tonne at 2,220-2,300, seeing light trading. However, monthly soybean arrivals between June and August are as high as above 10 mln tonnes, so 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 regions have faced with a stock overage. In addition, many aquatic products in Beijing have been tested positive for COVID-19, affecting demand in aquaculture. Thus, buyers are in a wait-and-see mood, so rapeseed meal is in light trading, which curbs meals price. Nevertheless, Canadian rapeseed imports are blocked amid tensions between Canada and China. Accordingly, both the operation rate and rapeseed stocks among crushing mill are staying at historic lows, boosting 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 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; Peruvian higher-quality SD with 67% protein content is 12,700-12,900 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 13,600-13,800 CNY/tonne.

Main importers in China now have low fishmeal stocks in hand, and also make small imports. Peru announced to temporarily close some docks due to the severe COVID-19 outbreak, which may also postpone local exports. Hence, domestic traders are propping up prices. However, the demand for fishmeal does not pick up very much now, as recent rains have slowed down aquaculture activities in China, so that most feed plants do not make bulk purchases. The demand now is weighing on domestic fishmeal market.

Stocks at port: Huangpu 53,000 tonnes, Fuzhou 17,000 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 22^nd (local time), fish catches in the first season of 2020 total 1,499,298 tonnes, taking up 60.65% of the total quota of 2.413 mln tonnes and with the fishing average at around 37, 000 tonnes per day and 913,702 tonnes remaining available.

Cottonseed meal: Cottonseed meal prices keep steady today. U.S. soybean futures ended lower on Tuesday as nice weather boosted an expectation of bumper harvest. Meals on Dalian Commodity Exchange continue falling back today, and spot soybean meal steadily down by 10-30 CNY/tonne. For soybean arrival at ports is huge in quantity between June and August, soybean crush remains a fresh record high of 2.15 mln tonnes per week. And soybean meal stocks in coastal regions have increased to 900,000 tonnes, an advance of 20% from the previous week. Such being the case, some oil plants halt the operation due to a stock overage, and 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. Nevertheless, cottonseed price is still high, so cottonseed meal market will not drop too much and likely fluctuate at a narrow range in the near term.

(USD $1=CNY ¥7.06)