Today (Jun 28), the market for meals in China is shown as follows:

Soybean meal: Meteorological agencies forecast that the U.S. Midwest would brace for crop boosting rains, and market participants predicted that U.S. soybean production this year would get near to or create a historical high. Meantime, people were concerned about the economic activities as the U.S. saw another surge in confirmed coronavirus cases. November U.S. soybean futures fell 7 cents on Friday to 861.25 cents, a decline of 12.75 cents from Tuesday. And China’s Dalian Commodity Exchange is closed today. Spot soybean meal partially fluctuates by 10-20 CNY/tonne in tepid trading and sit at 2640-2750 CNY/tonne in coastal regions. (Tianjin 2730-2750, Shandong 2675-2700, Jiangsu 2640-2660, Dongguan 2640-2670, Guangxi 2650-2680, and Fujian 2660-2690.) China’s ports will receive a monthly average of over 10 million tonnes of soybeans from June to August. And domestic oil mills now maintain operation rates at an extremely high level, so that soybean meal stocks keep increasing and some mills have to suspend production due to swelling inventories. However, large hog breeding groups in China are in mass production stage, so soybean meal posts a positive demand prospect. And U.S. soybean crops are in the stage of growth when there could be weather speculations easily in the market. Besides, uncertainty remains in relations between China and the United States. In a hybrid of the bull and the near, soybean meal market may trade at a narrow range to adjust in the short run, and buyers with adequate stocks can stay on the sidelines.

Imported rapeseed meal: U.S. soybean production is likely to mark new highs this year as favorable rainfall crossed Midwest. Meanwhile, markets are worry about economic damages out of a spike in U.S. COVID-19 infections. U.S. soybean futures ended lower on Friday. Rapeseed meal futures were closed on Zhengzhou Commodity Exchange over the weekend, and rapeseed meal price in coastal regions settled at 2,220-2,300, seeing light trading. As monthly soybean arrivals between June and August are as high as above 10 mln tonnes, soybean crush remains super high and soybean meal stocks in coastal regions consecutively climb up. Besides, buyers are in a wait-and-see mood due to sprawling coronavirus in Beijing. Consequently, rapeseed meal is in light trading, which curbs meals price. In addition, Australia-China relations also rise amid tensions between Ottawa and Beijing, disrupting imports of rapeseed. Accordingly, both the operation rate and rapeseed stocks among crushing mill are staying at historic lows. In this case, oil plants prop up price as rapeseed meal supply gets tight. It is expected that short-term rapeseed meal market may fluctuate at a narrow range.

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 52,000 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 lower by 100 USD at 1,300 USD/tonne for Peruvian Standard with 65% protein content and lower by 100 USD at 1,530 USD/tonne for Peruvian super with 68% protein content. Chilean Standard with 65% protein content is quoted lower by 100 USD at 1,390 USD/tonne, and super with 68% protein content lower by 100 USD at 1,620 USD/tonne.

Fish catches in Peru: As of June 25th(local time), fish catches in the first season of 2020 total 1,649,002 tonnes, taking up 68.34% of the total quota of 2.413 mln tonnes and with the fishing average at around 37, 000 tonnes per day and 763,998 tonnes remaining available.

Cottonseed meal: Cottonseed meal prices keep steady and decline by 10 CNY/tonne in several regions. For soybean arrival at ports is huge in quantity between June and August, the operation rate among crushing mills remains super high and soybean meal stocks in coastal regions increase continually. Such being the case, some oil plants have halted 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)