Today (Jul 7), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures rose on Monday, and meal futures also extend gains on China’s Dalian Commodity Exchange today. Spot soybean meal prices steadily go up 10-20 CNY/tonne to 2820-2880 CNY/tonne in thinner trading. (Tianjin 2880, Shandong 2870-2890, Jiangsu 2830-2860, Dongguan 2820-2860, and Guangxi 2830-2870.) U.S. soybean futures continue an uptrend on hot, dry crop weather. And Brazil has almost exhausted its soybean supplies, leading to a firm premium. In addition, hog stocks are gradually recovering in China. In terms of nutrition and price, soybean meal is a better choice than alternative meals, so that it takes up a bigger proportion in feed formula. Mid-to-downstream customers are rushing to stock up soybean meal following a rise in its prices. With a huge pickup in demand, oil mills have almost sold out spot soybean meal for July shipments and have very limited goods available now. Overall, soybean meal prices may fluctuate to move higher gradually on concerns over U.S. crop weather problems, but meal futures pare gains on the DCE in afternoon trading, so participants still need to avoid risks of short-term fluctuations.

Imported rapeseed meal: U.S. soybean futures closed higher on Monday on the increased uncertainty of production prospect over the high temperature and dryness across crop area. The rally in meals futures in China slowed. And rapeseed meal price in coastal regions settled up 10-20 CNY/tonne at 2,300-2,370, but still seeing light trading. Rapeseed crush stays at low levels as the imports of rapeseed are restricted amid tensions between Ottawa and Beijing. Moreover, U.S. soybean market could be easily affected by people’s worries about the weather condition. And there still exists uncertainty in U.S.-China relations. Thus, these are bullish for rapeseed meal market. In addition, the operation rate among crushing mills remains super high due to huge soybean arrival at ports, so soybean meal stocks in coastal areas keep growing. Besides, the second wave of COVID-19 outbreak in Beijing is still affecting the demand for meats and aquatic products, limiting the upward space of rapeseed meal market. In this case, rapeseed meal futures pare gains in afternoon trading. Buyers can stay on the sideline in case spot rapeseed meal fluctuates in the near term after a wave of rise.

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

China’s port fishmeal stocks have been falling to 100,000 tonnes after a spell of consumption, so major enterprises now have not very much fishmeal in storage. However, fish catches have been 80% completed in Peru and may exhausted the quota in middle July if at current speed, and local manufacturers thus gradually loosen their prices. The demand for fishmeal does not pick up very much in China now, as rains have influenced aquaculture in most southern regions. A majority of feed plants do not make bulk purchases, subduing the trading at ports. Overall, fishmeal market is predicted to steady and slightly adjust today.

Stocks at ports: Huangpu 48,000 tonnes, Fuzhou 16,000 tonnes, Shanghai 28,000 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 July 5^th (local time), fish catches in the first season of 2020 total 2,032,433 tonnes, taking up 84.23% of the total quota of 2.413 mln tonnes and with the fishing average at around 38,000 tonnes per day and 380,567 tonnes remaining available.

Cottonseed meal: Cottonseed meal prices keep steady today. U.S. soybean futures closed up on Monday. And meals on Dalian Commodity Exchanged also further rose today, and spot soybean meal steadily down by 10-20 CNY/tonne. Besides, cottonseed price is still high amid decreasing supply, boosting cottonseed meal market. But the operation rate among soyoil plants remains super high, leading to a consecutive increase in soybean meal stocks. Moreover, the demand for cottonseed meal is limited due to its low cost performance. These are curbing cottonseed meal market. But meals price fluctuate to rebound gradually affected by the weather condition across crop area, so cottonseed meal will probably follow soybean meal to moderately increase.

(USD $1=CNY ¥7.03)