Today (Aug 18), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures rose on purchases by China on Monday, and meal futures expand their early gains on China’s Dalian Commodity Exchange today. Spot soybean meal prices steadily fluctuate by 10-20 CNY/tonne to 2,840-2,950 CNY/tonne in coastal regions, seeing some low-level purchases today. (Tianjin 2950, Shandong 2890-2910, Jiangsu 2860-2880, Dongguan 2840-2850, and Guangxi 2840-2870.) Little precipitation is forecast in the U.S. Midwest in the coming week, so U.S. soybean futures rose on concerns over drought damages against soybean yield. The demand for soybean meal in China goes stronger following a recovery in the breeding industry. With many outstanding contracts in hand, domestic millers tend to prop up prices. However, soybean arrivals at domestic ports are expected at 10.35 mln tonnes and 8.9 mln tonnes in August and September, so that crushing plants are working at high rates. 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 under looming stock pressure. In the short term, soybean meal prices will swing at a narrow range.

Imported rapeseed meal: US soybean futures sharply rose on Monday on China’s buying. Also, meal futures in China today went up after high opens. And rapeseed meal price in coastal regions settled up 10-20 CNY/tonne at 2,240-2,330 CNY/tonne, seeing a light trading. Rapeseed crush still stays at low levels due to limited rapeseed imports amid tensions between China and Canada. And soybean meal for August contract has been basically sold out. Overall, soybean meal market still keep strengthening amid worries about rising tension between U.S. and China, boosting rapeseed meal market. But soybean arrival could respectively reach up to 10.35 mln tonnes and 8.90 mln tonnes in August and September. In the fourth quarter, the monthly arrival may be as high as over 8 mln tonnes. Thus, soybean crush will remain high owing to ample feedstock, leading to a consecutive increase in soybean meal inventory. In a hybrid of the bull and the bear, short-term rapeseed meal price will probably fluctuate at a narrow range.

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 CNY/tonne from yesterday; Peruvian higher-quality SD with 65% protein content is 10,900-11,100 CNY/tonne, down 100 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 11,800-11,900 CNY/tonne, down 100 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 are 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 move under pressure 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 fluctuations of 20-50 CNY/tonne today. The operation rate will maintain high levels as soybean arrival at ports is huge in quantity. In this case, soybean meal stocks in coastal regions rally 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. Besides, U.S. soybean futures surged on Monday as China actively purchased US soybeans. Meal futures on Dalian Commodity Exchange today went up with high opens, and spot soybean meal in coastal areas steadily rose by 10-20 CNY/tonne, bulling cottonseed meal market. It is expected that short-term cottonseed meal market may fluctuate at a narrow range.

(USD $1=CNY ¥6.93)