Today (Jun 29), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures closed with losses in the last several sessions, and meal futures expand losses on China’s Dalian Commodity Exchange 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.) Given massive soybean imports between June and August, China’s soybean crush maintains at an exceedingly high level. Soybean meal stockpiles have thus been piling up in coastal regions, and some oil mills have to suspend production due to swelling inventories. Domestic fundamentals have been adding pressure to the market, in addition to a decline in U.S. soybean futures, so soybean meal prices follow futures to fluctuate to adjust in the short run. However, hog stocks have been recovering in China as large hog breeding groups are in mass production stage. And premiums for Brazilian soybeans have also risen due to tight supplies, which raises the cost of imports. Besides, DCE oil futures post huge losses today, and oil mills are propping up meal prices, so there may be only slight declines in soybean meal prices. China warned that the U.S. meddling in Hong Kong and Taiwan affairs could jeopardize the phase one trade deal, according to a report by the Wall Street Journal. And U.S. soybean crops are in the stage of growth when there could be weather speculations easily in the market. Soybean meal market will have some upward potential if the market turns to focus on the above factors. Buyers can wait to buy dips for appropriate replenishment.

Imported rapeseed meal: U.S. soybean futures ended lower during the Dragon Boat Festival holiday. Rapeseed meal futures fall back with low opens today on Zhengzhou Commodity Exchange, and rapeseed meal price in coastal regions settles down 10 CNY/tonne at 2,210-2,290, seeing light trading. As monthly soybean arrival between June and August is huge in quantity, soybean crush remains super high and soybean meal stocks consecutively climb up. Besides, the consumption of aquatic products is affected by sprawling coronavirus in Beijing. Consequently, rapeseed meal is in light trading, which curbs meals price. In addition, the imports of rapeseed are still disrupted amid tensions between Ottawa and Beijing. Accordingly, both rapeseed crush and inventories among crushing mill are staying at historic lows. In this case, oil plants tend to prop up price as rapeseed meal supply gets tight, limiting the price declines of it. It is expected that short-term rapeseed meal market may fluctuate at a narrow range. Buyers can stay on the sideline and make proper replenishment upon low and stable price.

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.

China’s fishmeal stocks are not in huge quantities at present, which helps support the prices. However, domestic demand for fishmeal does not pick up very much now, as recent rains have slowed down aquaculture activities in the southern parts, so that most feed plants do not make bulk purchases. The demand now is weighing on domestic fishmeal market. Meanwhile, local fishmeal manufacturers in Peru are facing growing selling presure due to good fishing catches and for a lack of bulk purchases, so that they have fractionally lowered down prices, which is also bearish to fishmeal market in China.

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

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 ¥7.08)