Today (Aug 17), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures fell last Friday as favorable weather conditions pointed to a bumper crop outlook, and meal futures swing at a narrow range on China’s Dalian Commodity Exchange today. Spot soybean meal prices steadily fluctuate by 10-20 CNY/tonne to 2,820-2,950 CNY/tonne in coastal regions, seeing some low-level purchases today. (Tianjin 2950, Shandong 2875-2900, Jiangsu 2840-2860, Dongguan 2820-2850, and Guangxi 2850-2870.) July feed production rose nearly 10% from a month earlier in China. The demand for soybean meal goes stronger following a recovery in the breeding industry. Many millers have sold out August soybean meal and also completed a high proportion of forward-month sales. Spot soybean meal prices started to follow futures to fluctuate and rebound moderately from late last week. However, both U.S. and Brazilian soybeans are forecast to have a big harvest. China’s soybean arrivals at ports are still huge in August and September, and domestic crushing plants will operate at a high rate. Currently, domestic soybean meal stockpiles have risen by 10% weekly to 1.03 mln tonnes in coastal regions, so that some millers have started to quicken deliveries with looming stock pressure. Overall, domestic soybean meal prices will swing at a narrow range in the near term.

Imported rapeseed meal: US soybean futures sharply dropped on Friday on an expectation of bumper harvest. Also, rapeseed meal futures on Zhengzhou Commodity Exchange in China declined today. And rapeseed meal price in coastal regions settled at 2,210-2,320 CNY/tonne with a fluctuation of 10 CNY/tonne, seeing a light trading. Soybean crush will maintain a high level owing to huge imports, dragging down 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 25,800 tonnes, down by 10% compared with the previous week. 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 at a narrow range. Buyers can wait for low and stable price to make proper replenishment.

Imported fishmeal: Imported fishmeal prices are fractionally lower today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 10,500-10,600 CNY/tonne, down 100-200 CNY/tonne from last Friday; Peruvian higher-quality SD with 65% protein content is 10,900-11,100 CNY/tonne, down 200 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 11,800-11,900 CNY/tonne, down 100-200 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 12,200-12,500 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 47,000 tonnes, Fuzhou 14,000 tonnes, Shanghai 29,000 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 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.

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 with partial declines of 30-50 CNY/tonne today. Soybean crush will maintain high levels as the arrival at ports is huge in quantity. In this case, soybean meal stocks in coastal regions increase by 10% to 1.03 mln tonnes compared to the previous week, 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. But cottonseed is pricey, pushing up the cost. Accordingly, factories have intention to prop up price. And short-term cottonseed meal market is predicted to fluctuate at a narrow range.

(USD $1=CNY ¥6.94)