Today (Jul 8), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures fell on Tuesday, and meal futures also expand their early losses on China’s Dalian Commodity Exchange today. Spot soybean meal prices steadily go down 10-20 CNY/tonne to 2820-2880 CNY/tonne. The trading is predicted to be tepid for spot contracts and vigorous on forward basis. (Tianjin 2880, Shandong 2865-2890, Jiangsu 2825-2850, Dongguan 2820-2850, and Guangxi 2830-2870.) China’s soybean meal stockpiles rose 3.5% weekly to 998,000 tonnes amid high soybean crush, so its prices fail to maintain constant and huge rises on bearish fundamentals. However, Brazilian soybean has seen firm supply premium, leading to a rise in the cost of import. And in China, oil mills have almost sold out spot soybean meal for July shipments and have very limited goods available now. Meanwhile, hog herd has been enlarging, and it will soon be the peak season for aquaculture. And in terms of nutrition and price, soybean meal is a better choice than alternative meals. Spot soybean meal prices go stronger than futures due to a pickup in demand. Overall, short-term soybean meal market will have limited declines and will probably keep range-bound and strengthening due to U.S. crop weather and uncertain relations between China and the United States.

Imported rapeseed meal: U.S. soybean futures closed down on Tuesday. Meals futures in China also pared gains after low opens today. And rapeseed meal price in coastal regions settled down 10-20 CNY/tonne at 2,270-2,360, but still seeing light trading. The operation rate among crushing mills remains super high due to huge soybean arrival at ports from June to August, thereby soybean meal stocks in coastal areas have increased by 3.5% to 998,000 tonnes. And the second wave of COVID-19 outbreak in Beijing is still affecting the demand for meats and aquatic products. Thus, rapeseed meal price is dragged down by these factors. Additionally, rapeseed crush stays at low levels as the imports of rapeseed are still restricted amid tensions between Ottawa and Beijing. And there still exists uncertainty in U.S.-China relations. Therefore, these are helpful to limit price declines of rapeseed meal, and short-term market may mainly fluctuate at a narrow range. Buyers can wait and see.

Imported fishmeal: Imported fishmeal prices are stable with a partial decline 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, a partial decline of 100 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 13,500-13,600 CNY/tonne, a partial decline of 100 CNY/tonne.

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. Hence, some traders have slightly lowered down prices today. However, China’s port fishmeal stocks have been falling to 100,000 tonnes, so major enterprises now have not very much Peruvian fishmeal in storage and are reluctant to sharply cut down prices. Overall, fishmeal market is predicted to steady and slightly adjust today.

Stocks at ports: Huangpu 48,000 tonnes, Fuzhou 16,000 tonnes, Shanghai 27,000 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.

Cottonseed meal: Cottonseed meal prices are stable today. Cottonseed price is still high amid decreasing supply, boosting cottonseed meal market. U.S. soybean futures finished down on Tuesday. And meals on Dalian Commodity Exchanged also fell back with low opens today, and spot soybean meal steadily down by 10-20 CNY/tonne. 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. Nevertheless, the overall trend of soybean meal is projected to fluctuate to stay strong underpinned by the weather condition across crop area, so cottonseed meal will probably follow soybean meal to moderately increase.

(USD $1=CNY ¥7.02)