Today (Jul 15), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures firmed on Tuesday, but meal futures swing fractionally on China’s Dalian Commodity Exchange today. Spot soybean meal prices are mixed, mostly up 10-40 CNY yet with a partial decline of 10-30 CNY. The spot trading is tepid and there will still be some purchases at low-level basis. Specifically, the prices sit at 2800-2910 CNY/tonne in coastal regions. (Tianjin 2910, Shandong 2840-2880, Jiangsu 2825-2840, Dongguan 2800-2830, and Guangxi 2830-2850.) DCE crush margins noticeably pick up now, in addition to huge soybean arrivals, so China’s oil mills are keeping soybean crush at a super high level and some have to halt for bulging meal stockpiles. Meanwhile, soybean meal deliveries are slow in southern China, where several provinces have been hit by heavy floods. Hence, soybean meal prices have limited upward space. However, China and the United States tensions could push the market higher at any moment. The U.S. has, disregarding China’s solemn representations, signed into law the Hong Kong Autonomy Act, and after months of U.S. pressure, the U.K. has banned Huawei from its 5G telecom network. China said it will make necessary responses. In addition, U.S. soybean futures will still gain support from the crop weather. And China’s crushers have presold July soybean meal. Crushers are propping up prices, so that spot soybean meal prices are stronger than futures.

Imported rapeseed meal: U.S. soybean futures further rose on Tuesday. Meals futures in China swing to lower today. And rapeseed meal price in coastal regions partly settled down 10 CNY/tonne at 2,230-2,330 CNY/tonne, with not much trading volume. For monthly soybean arrival at ports will be upwards of 10 mln tonnes in July and August, the operation rate among crushing mills remains super high, leading to a consecutive increase in soybean meal stocks. Besides, the demand for meats and aquatic products is still under impact of COVID-19, which is bearish for rapeseed meal price. But rapeseed imports are still restricted amid tensions between Ottawa and Beijing. Furthermore, rapeseed meal stocks stay at lows as aquaculture is entering into a peak season. And soybean meal inventory is also limited due to a pre-sale, so oil mills intend to prop up price. Likewise, there still exists uncertainty in relations between U.S. and China, which may limit price declines of rapeseed meal. Hence, short-term rapeseed meal market is predicted to fluctuate at a narrow range. Buyers can make proper replenishment upon low and stable price.

Imported fishmeal: Imported fishmeal prices are stable today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 11,000-11,300 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 11,500-11,700 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 12,500-12,800 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 13,300-13,500 CNY/tonne.

China’s fishmeal inventories at ports have fallen below 100,000 tonnes at present, so traders are propping up prices due to small Peruvian fishmeal in stock. However, fish catches have been 90% completed in Peru and may exhausted the quota in middle July, and local manufacturers thus gradually loosen their prices. Moreover, the demand for fishmeal does not pick up very much in China now, as rains have influenced aquaculture in most southern regions. Overall, fishmeal market is predicted to steady and slightly adjust in the short run.

Stocks at ports: Huangpu 45,000 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 lower by 100 CNY at 1,290 USD/tonne, and super with 68% protein content lower 100 CNY at 1,520 USD/tonne.

Fish catches in Peru: As of July 12^th (local time), fish catches in the first season of 2020 total 2,179,177 tonnes, exhausting 90.31% of the total quota of 2.413 mln tonnes and with the fishing average at around 36,000 tonnes per day and 233,823 tonnes remaining available.

Cottonseed meal: Cottonseed meal prices mainly keep steady and partly rise by 10-30 CNY/tonne today. The operation rate among crushing mills is low, and the cost remains high. U.S. soybean futures further closed higher on Tuesday. But meals fluctuate slightly on Dalian Commodity Exchange today, and spot soybean meal mostly up by 10-40 CNY/tonne. Hence, cottonseed meal market is bolstered by these factors. However, crush margins of soybean futures improve distinctly for the moment, and crushing mills raise the operation rate amid huge arrival at ports. Some even halt the operation due to overstock. 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 and uncertainty in relations between U.S. and China.

(USD $1=CNY ¥7.00)