Today (Aug 14), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures surged on strong demand from China on Thursday, and meal futures open high and climb further on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 10-30 CNY/tonne to 2,830-2,940 CNY/tonne in coastal regions, seeing some low-level purchases today. (Tianjin 2960, Shandong 2895-2910, Jiangsu 2860-2890, Dongguan 2840-2890, and Guangxi 2860-2900.) July feed production rose nearly 10% from a month earlier in China, a sign that the demand for soybean meal is stronger than expected. Many millers have sold out August soybean meal and also completed a high proportion of forward-month sales. Hence, short-term spot soybean meal prices follow futures to swing to rebound moderately. But with huge soybean arrivals at ports in both August and September, crushers are operating at a high rate. Millers are facing certain stress and begin to quicken up deliveries as soybean meal inventories mount higher. Participants are concerned that the marketing of new U.S. soybean crops in September will pressure domestic meal prices. This is still curbing the rise in meal prices. Buyers are suggested to make appropriate replenishment on the dips or just stay on the sidelines if with adequate stocks.

Imported rapeseed meal: US soybean futures sharply rose on Thursday on strong export demand. But the dominant contracts of rapeseed meal futures on Zhengzhou Commodity Exchange in China moved lower after high opens. And rapeseed meal price in coastal regions settled down 10 CNY/tonne at 2,210-2,310 CNY/tonne, seeing a light trading. Besides, soybean arrival at ports could respectively reach up to 10.35 mln tonnes and 8.90 mln tonnes in August and September. In this case, soybean crush will maintain a high level owing to the ample supply. For the moment, soybean meal stocks top 935,000 tonnes with an increase of 9% from the previous week, weighing on rapeseed meal market. However, rapeseed crush stays at low levels due to limited rapeseed imports amid tensions between China and Canada. As aquaculture is in a peak season, rapeseed meal inventory in coastal regions settles at 28,800 tonnes, down by 33% compared with the same period last year. Moreover, breeding industry is recovering gradually, so soybean meal for August contract has been basically sold out. Overall, soybean meal market still keep strengthening, boosting rapeseed meal market. It is expected that short-term rapeseed meal price will probably fluctuate to stay strong.

Imported fishmeal: Imported fishmeal prices are fractionally lower today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 10,600-10,700 CNY/tonne, down 100-200 CNY/tonne from yesterday; Peruvian higher-quality SD with 65% protein content is 11,000 CNY/tonne, down 200 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 11,900-12,000 CNY/tonne, down 100-300 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 12,400-12,600 CNY/tonne, down 100-200 CNY/tonne. More and more fresh fishmeal cargoes arriving at domestic ports and are of lower cost, while the demand is not as good as expected; hence, many traders undercut prices to lock in profits. This is adding bearish sentiment to the 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 higher by 20 USD at 1,220 USD/tonne for Peruvian Standard with 65% protein content and at 1,450 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.

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 surged on Thursday on China’s strong demand. Meal futures on Dalian Commodity Exchange today also went up after high opens. And spot soybean meal in coastal regions further rose 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)