Today (Jul 2), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures continued sharp gains on Wednesday on the bullish USDA report and on concerns over weather conditions. Meal futures also extend rises on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 40-50 CNY/tonne and sit at 2770-2840 CNY/tonne in coastal regions; the trading is still better on low-level basis and tepid at high-level prices. (Tianjin 2840, Shandong 2815-2860, Jiangsu 2780-2800, Dongguan 2770-2800, and Guangxi 2770-2800.) U.S. soybean crops will step into the key growing stage in July and August, for which U.S. soybean futures will easily rise on worries about weather conditions. In addition, soybean crush margins are small on DCE now. And domestic demand prospect for soybean meal is positive, for hog stocks have been recovering for months. Besides, China and the U.S. are still in escalating tensions, as China has officially implemented the National Security Law in Hong Kong. These fundamentals help bolster soybean meal prices to go up. Soybean meal stockpiles have been adding pressure to the market, but the overall sentiment has improved, so soybean meal prices may fluctuate from the bottom. Participants can continue to focus on China-U.S. relations and weather conditions in the U.S. crop belt.

Imported rapeseed meal: U.S. soybean futures and domestic meals futures continued surging on the report by USDA. Rapeseed meal price in coastal regions settled up 10-20 CNY/tonne at 2,280-2,360, seeing light trading. The imports of rapeseed are still limited amid tensions between Ottawa and Beijing. Accordingly, both rapeseed crush and inventories among crushing mill are staying at historic lows. And there still exists uncertainties in China-U.S. relations as China formally implemented a national security law on Hong Kong. Besides, U.S. soybean futures hit nearly 900 cents on account of the worries about weather condition. Therefore, rapeseed meal market is boosted by these factors. But soybean arrivals at ports between June and August are huge in quantity, the operation rate among crushing mills remains super high. Based on this, soybean meal stocks consecutively climb up. In addition, the second wave of COVID-19 outbreak in Beijing is still affecting the demand for meats and aquatic products. Consequently, the price rises of rapeseed meal is projected to be limited under the bearish fundamentals.

Imported fishmeal:  Imported fishmeal prices are slightly lower today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 11,300-11,500 CNY/tonne, down 200 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 11,600-12,000 CNY/tonne, down 100-200 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 12,600-12,800 CNY/tonne, down 100 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 13,500-13,600 CNY/tonne, down 100-200 CNY/tonne.

As fish catches go along at a steady pace in Peru, local manufacturers have marginally reduced their quotes, which will also lower down the cost of new fish meal. Meanwhile, the demand for fishmeal does not pick up very much in China now, so that most feed plants do not make bulk purchases. Seeing small trading volume, port traders fractionally cut down prices today. However, China’s fishmeal stocks are not in huge quantities at present, and the COVID-19 outbreak is still severe in Peru; hence, fishmeal prices will have limited declines in China.

Stocks at port: Huangpu 50,000 tonnes, Fuzhou 16,000 tonnes, Shanghai 29,000 tonnes, Tianjin 1,000 tonnes, Dalian 6,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports.

FOB quotes from foreign markets today: It is quoted steadily at 1,250 USD/tonne for Peruvian Standard with 65% protein content and at 1,480 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.

Fish catches in Peru: As of June 30^th (local time), fish catches in the first season of 2020 total 1,862,750 tonnes, taking up 77.2% of the total quota of 2.413 mln tonnes and with the fishing average at around 38, 000 tonnes per day and 550,250 tonnes remaining available.

Cottonseed meal: Cottonseed meal prices keep steady and rise in some regions today. U.S. soybean futures closed much higher on Wednesday on the bullish report by USDA and concerns about weather. Meals on Dalian Commodity Exchange still go up after high opens today, and spot soybean meal up by 40-50 CNY/tonne. Besides, soybean developing enters into a critical period in July and August, so U.S. soybean will easily rise affected by worries about weather condition. Accordingly, cottonseed meal price in some regions is boosted today dominated by bullish factors. In addition, soybean arrival at ports is huge in quantity between June and August, so the operation rate among crushing mills remains super high, putting pressure on the inventory of soybean meal. It is bearish for meals market. And cottonseed meal price will probably stay stable with small fluctuations in a short term.

(USD $1=CNY ¥7.06)