Today (Jul 13), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures fell last Friday on a neutral-to-bearish USDA report and on improving crop weather. And meal futures decline on China’s Dalian Commodity Exchange today. Spot soybean meal prices drop 10-50 CNY/tonne in tepid trading. Specifically, the prices sit at 2800-2870 CNY/tonne in coastal regions. (Tianjin 2870, Shandong 2835-2860, Jiangsu 2815-2850, Dongguan 2800-2840, and Guangxi 2820-2840.) China’s oil mills have been operating at maximum capacity due to huge soybean imports in July and August, and some mills now have to suspend production due to swelling soybean meal inventories. Besides, soybean meal shipments have been at a slower pace as several provinces in the southern regions are hit by severe floods. However, U.S. soybean futures will have limited declines and keep strengthening due to weather problems. And domestic oil mills have almost sold out spot soybean meal for July deliveries. Overall, short-term soybean meal will have limited declines and still have some upward impetus after this round of declines. Buyers can wait for low and stable prices to make appropriate replenishment.

Imported rapeseed meal: It saw a drastic fall in U.S. soybean futures on Friday. Rapeseed meal futures in China fell back with low opens today. And rapeseed meal price in coastal regions settled down 40-50 CNY/tonne at 2,230-2,330 CNY/tonne, with not much trading volume. For soybean arrival at ports is huge in quantity and soybean could easily go bad in the hot summer weather, the operation rate among crushing mills remains super high. In consequence, soybean meal stocks in coastal regions keep increasing, which bears the rapeseed meal market. Thus, rapeseed meal price is dragged down. Besides, rapeseed crush stays at low levels as rapeseed supply is tight amid tensions between Ottawa and Beijing. Rapeseed meal inventories in coastal areas declined by 8.5% to 24,000 tonnes compared to the previous week. Likewise, there still exists uncertainty in the weather condition across U.S. soybean area and relations between U.S. and China, which may limit price declines of rapeseed meal. Buyers can make proper replenishment upon low and stable price.

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 11,200-11,300 CNY/tonne, down 100-200 CNY/tonne from last Friday; Peruvian higher-quality SD with 65% protein content is 11,600-11,800 CNY/tonne, down 200 CNY/tonne from last Friday; Peruvian higher-quality SD with 67% protein content is 12,600-12,800 CNY/tonne, down 100 CNY/tonne from last Friday; and Peruvian Super Prime SD with 68% protein content is 13,400-13,600 CNY/tonne, down 100 CNY/tonne from last Friday.

Fish catches have been nearly 90% 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, port traders have slightly lowered down prices today. However, China’s port fishmeal stocks have been falling below 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 in the short run.

Stocks at ports: Huangpu 46,000 tonnes, Fuzhou 16,000 tonnes, Shanghai 25,000 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 9^th (local time), fish catches in the first season of 2020 total 2,125,987 tonnes, exhausting 88.11% of the total quota of 2.413 mln tonnes and with the fishing average at around 37,000 tonnes per day and 287,013 tonnes remaining available.

Cottonseed meal: Cottonseed meal prices remain flat and up by 20-50 CNY/tonne in some regions today. The operation rate among crushing mills is low, and some factories raise cottonseed meal price due to high cost. U.S. soybean futures fell on Friday on account of the neutral-to-bearish USDA report and improved weather. Also, meals on Dalian Commodity Exchange went down, and spot soybean meal down by 10-50 CNY/tonne. Besides, the demand for cottonseed meal is limited due to low cost performance, so the price is negotiable. Nevertheless, recent cottonseed meal market is projected to fluctuate to stay strong underpinned by the weather condition across soybean area.

(USD $1=CNY ¥7.00)