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

Soybean meal: U.S. soybean futures rose on Wednesday on continued purchases of China and as the market had been digesting the bearish USDA report which confirmed the expectations. Meal futures open high and climb further on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 20-40 CNY/tonne to 2,830-2,940 CNY/tonne in coastal regions, seeing low-level purchases today. (Tianjin 2920-2940, Shandong 2875-2920, Jiangsu 2845-2860, Dongguan 2830-2850, and Guangxi 2840-2880.) July feed production saw a month-on-month increase of 9.6% in China, of which hog feed rose 10.7%, according to data from Cofeed. The recovery in the breeding industry has bolstered the demand for soybean meal stronger than the forecast. Spot soybean meal prices also rally, tracking a rebound on the DCE. However, China’s soybean imports will likely reach 10.35 mln tonnes and 8.9 mln tonnes in August and September, respectively. The huge supply will keep soybean crush at a high level. Currently, soybean meal inventories total 935,000 tonnes, and some crushing plants have started to speed up deliveries. Traders are cautious in going long as the USDA confirmed expectations for massive soybean crops. These will curb the rises in soybean meal prices. Buyers are suggested to make appropriate replenishment on the dips but not to chase after excessively high prices.

Imported rapeseed meal: Despite the bearish supply and demand report by the USDA, market expects that China’s demand for US soybeans is growing amid its large buying. US soybean futures rose on Wednesday. Meal futures in China also went up today. And rapeseed meal price in coastal regions settled up 10-30 CNY/tonne at 2,220-2,320 CNY/tonne, seeing a light trading. Rapeseed crush stays at low levels due to limited rapeseed imports amid tensions between China and Canada. Besides, breeding industry is recovering gradually. In this case, soybean meal for August contract has been basically sold out. Same goes for forward contracts. Moreover, rapeseed meal price may be underpinned by worries about souring ties between US and China. However, soybean arrival at ports is huge in quantity in August and September, and even could reach up to 8 mln tonnes each month in the fourth quarter, leading to a super high operation rate. Consequently, soybean meal stocks also stop declining and bounce back, and some oil mills urge to deliver the goods. Thus, the price rises of meals are limited. And short-term rapeseed meal price will probably fluctuate to stay strong. FYI, buyers can make proper replenishment on the dips but had better not chase up price too excessively.

Imported fishmeal: Imported fishmeal prices steady today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 10,700-10,800 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 11,000-11,300 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 11,900-12,300 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 12,600-12,700 CNY/tonne. With fresh, lower-cost fishmeal from Peru, Chinese traders are following the market trend to make shipments, which is adding bearish sentiment to domestic fishmeal market. Overall, domestic fishmeal market is predicted to stay stable with slight declines in the near term.

Stocks at ports: Huangpu 46,000 tonnes, Fuzhou 14,000 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: Sept/Oct shipments are quoted steadily at 1,200 USD/tonne for Peruvian Standard with 65% protein content and at 1,430 USD/tonne for Peruvian super with 68% protein content. Chilean Standard with 65% protein content is quoted at 1,220 USD/tonne, and super with 68% protein content at 1,450 USD/tonne.

Fish catches in Peru: Up to now, fish catches in the first season of 2020 total 2,325,142 tonnes, exhausting 96.36% of the total quota of 2.413 mln tonnes and with the fishing average at around 27,000 tonnes per day and 87,858 tonnes remaining available.

Cottonseed meal: Cottonseed meal prices stay stable today. The cost is pulled up as cottonseed is pricey, so manufacturers prop up prices. U.S. soybean futures closed higher on China’s strong buying, in spite of the bearish USDA report. Meal futures on Dalian Commodity Exchange also went up after high opens. And spot soybean meal in coastal regions up by 20-40 CNY/tonnes, bulling cottonseed meal market. Besides, soybean arrival at ports in August and September could be as high as 10.35 mln tonnes and 8.90 mln tonnes, respectively. With an ample supply, soybean crush stays at high levels. So far, soybean meal inventory has increased by 9% weekly to 935,000 tonnes, which puts pressure on crushing mills. In addition, the demand for cottonseed meal is reduced as feed mills adjust the feed formula due to its lower cost performance compared to soybean meal. Consequently, cottonseed oil trading gets lighter, depressing cottonseed meal price. Therefore, short-term cottonseed meal market is predicted to fluctuate at a narrow range.

(USD $1=CNY ¥6.94)