Today (Aug 20), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures edged higher on Wednesday, and meal futures swing slightly on China’s Dalian Commodity Exchange today. Spot soybean meal prices steadily fluctuate by 10-30 CNY/tonne to 2,810-2,930 CNY/tonne in coastal regions, in tepid trading. (Tianjin 2930, Shandong 2860-2900, Jiangsu 2830-2860, Dongguan 2810-2830, and Guangxi 2840-2860.) Chicago soybean futures climbed to a seven-month high on Wednesday as market participants were concerned about U.S. soybean yield under dryness and on strong export sales, and Dalian meal futures follow to catch the uptrend. July feed production saw a month-on-month rise of 9.6% in China in the wake of a recovery in breeding industry. And July soybean meal market was also in strong trade, so that domestic millers now still have many outstanding contracts and tend to prop up prices. These factors help keep the market supported. But it is of high probability that U.S. soybean crops will bring a bumper harvest. And as Aug-Sept soybean arrivals at ports will be massive in China, domestic crushing plants will work at very high rates. Domestic soybean meal stocks rose 10% weekly to 1.03 mln tonnes following a slower pace in deliveries in the last two weeks, and some millers have started to quicken deliveries under mounting stock pressure. Soybean meal prices have little upward potential now, and short-term trend will probably fluctuate at a narrow range.

Imported rapeseed meal: U.S. soybean futures edged up on Wednesday, result from the bright export outlook and market’s worries about prolonged draught weather in portions of US Midwest. But rapeseed meal futures on Zhengzhou Commodity Exchange in China today fluctuate slightly. And rapeseed meal price in coastal regions settles down 10 CNY/tonne at 2,220-2,300 CNY/tonne, seeing a light trading. Soybean crush will remain super high with huge imports in August and September. Based on this, soybean meal stocks in coastal areas rally to 1.03 mln tonnes, which is 10% higher than the previous week. This may curb rapeseed meal price. However, rapeseed crush still stays at low levels due to limited rapeseed imports amid tensions between China and Canada. Besides, aquaculture has entered into a peak season and livestock breeding is also recovering gradually, boosting rapeseed meal price. Thus, 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 stable with a decline today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 10,400-10,500 CNY/tonne, down 200 CNY/tonne from yesterday; Peruvian higher-quality SD with 65% protein content is 10,800-11,000 CNY/tonne, down 200 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 11,700-11,900 CNY/tonne, down 200 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 12,200-12,400 CNY/tonne, down 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 48,000 tonnes, Fuzhou 14,000 tonnes, Shanghai 30,000 tonnes, Tianjin 1,000 tonnes, Dalian 7,000 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: The first fishing season for centre-north oceans in 2020 has concluded on August 15; and for southern regions, the maximum allowable catch quota is 435,000 tonnes, starting on August 1.

Cottonseed meal: Cottonseed meal prices stay stable today. The operation rate will maintain high levels as soybean arrival at ports is huge in quantity. Recently the delivery of soybean meal has been slowed. 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. It is expected that short-term cottonseed meal market may fluctuate at a narrow range.

(USD $1=CNY ¥6.93)