Today (Jul 21), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures edged higher on Monday and meal futures extend gains on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 30-70 CNY, attracting some low-level purchases. Specifically, the prices sit at 2880-3010 CNY/tonne in coastal regions. (Tianjin 3010, Shandong 2975-2980, Jiangsu 2910-2940, Dongguan 2880-2900, and Guangxi 2900-2940.) China’s swine stocks have seen a recovery for six straight months, and the aquaculture has also been in full swing now; hence, domestic demand for soybean meal has embraced a noticeable rise. In the week as of July 17^th, weekly soybean meal inventories fell 4.7% to 879,000 tonnes, marking for a consecutive second week decline. And some crushers have presold August soybean meal for more than a half. Hence, spot soybean meal prices is stronger than futures prices and also see larger rises. Overall, along with higher DCE crush margins and huge soybean imports, domestic oil mills are maintaining soybean crush at a very high level, which will add to fluctuations in the soybean meal market. But China and the United States are in tensions, and investors are focusing on weather in the U.S. crop belt. Besides, there is an inflation expectation caused by the the excessive insurance of currencies globally. Therefore, soybean meal prices will keep range-bound to move higher on the whole. Buyers are suggested to keep safe stocks and buy dips appropriately.

Imported rapeseed meal: U.S. soybean futures on Monday and meal futures in China today rose after high opens amid a strong demand in China. And rapeseed meal price in coastal regions settled up 40-70 CNY/tonne at 2,350-2,450 CNY/tonne, with tepid trading. Both rapeseed crush and rapeseed meal inventory are staying at low levels as rapeseed imports are still restricted amid tensions between Ottawa and Beijing. The trading volume of rapeseed meal in forward contracts increased to 40,000 tonnes on Monday. Besides, hog inventory has increased for the sixth consecutive month and aquaculture has entered into a peak season, leading to a recovery of breeding demand. And soybean meal stocks were 879,000 tonnes last week, a decline of 4.65%. Moreover, the spot goods available for sale are not enougrh, and some mills have sold over a half of stocks in August. Therefore, soybean meal price goes up, boosting rapeseed meal market. On the other hand, there still exist large uncertainties in weather condition across soybean area and relations between U.S. and China. In addition, the overall rapeseed meal market is projected to fluctuate to keep strengthening. Buyers had better maintain safety inventory upon low 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 11,000-11,300 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 12,500-12,700 CNY/tonne, down 100 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 13,300-13,400 CNY/tonne, down 100 CNY/tonne.

As Peruvian fishing companies are expected to complete the the country’s 2.413-mln-tonne of anchovy quota within a week and due to disappointing sales of fresh fishmeal, local manufacturers have little intention to support prices and offered preferential prices for bulk purchases. And in China, the demand for fishmeal does not pick up very much, for rains have influenced aquaculture in most southern regions, so some traders sell at lower prices to attract purchases today. However, fishmeal inventories at ports have fallen to 92,000 tonnes in China at present, so traders do not intend to continue reducing prices due to small Peruvian fishmeal in stock. Overall, fishmeal market is predicted to steady with slight declines in the short run. 

Stocks at ports: Huangpu 43,000 tonnes, Fuzhou 15,000 tonnes, Shanghai 24,000 tonnes, Tianjin 1,000 tonnes, Dalian 5,000 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 at 1,290 USD/tonne, and super with 68% protein content at 1,520 USD/tonne.

Cottonseed meal: Cottonseed meal up by 50-100 CNY/tonne today. For the moment, the operation rate among crushing mills is low, and the cost remains high. U.S. soybean futures further ended higher on Monday. Hog inventory has increased for the sixth consecutive month and aquaculture has entered into a peak season, seeing a continuous improvement in demand for soybean meal. Based on this, meal futures further rise on Dalian Commodity Exchange today, and spot soybean meal up by 30-70 CNY/tonne. Hence, cottonseed meal market is bolstered by these factors. Besides, soybean arrival is huge in quantity in recent months due to a distinct improvement in crush margins, so crushing mills raise the operation rate. But the tensions between U.S. and China have heightened, and markets are concerned about weather condition across soybean area. Furthermore, excessive monetary supply over the world brings an inflation expectation. Leading by bullish factors, cottonseed meal market is likely to keep strengthening in the near term.

(USD $1=CNY ¥6.99)