Today (Aug 21), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures pulled back on Thursday as the weather forecast for rains in the 7-10 days and on strong soybean yield prospects observed in the crop tour. Meal futures expand their early losses on China’s Dalian Commodity Exchange today. Spot soybean meal prices go down 10-30 CNY/tonne to 2,800-2,910 CNY/tonne in coastal regions, in tepid trading. (Tianjin 2910, Shandong 2820-2870, Jiangsu 2800-2860, Dongguan 2800-2820, and Guangxi 2820-2840.) China’s soybean crush has been at a very high level with strong imports, while soybean meal has gone into tepid trade and slow delivery for weeks, so that meal stocks continue to mount higher. Some millers are seeking to speed up deliveries due to swelling inventories. But hog, poultry and aquaculture are in a recovery and millers still have many outstanding contracts, which is positive to the market. In the short term, soybean meal prices will still fluctuate at a narrow range and with slight declines. Besides, China and the United States will hold phone talks to review the trade deal in the coming days, so participants can pay close attention to it.

Imported rapeseed meal: U.S. soybean futures closed down on Thursday. Meal futures in China today pare gains after low opens. And rapeseed meal price in coastal regions settles down 10-20 CNY/tonne at 2,200-2,290 CNY/tonne, seeing a light trading. China is still purchasing US soybeans, leading to a huge arrival at ports in August and September. In this case, soybean crush will remain super high, which gradually puts pressure on soybean meal stocks, thereby weighing on rapeseed meal market. 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. Rapeseed meal inventories in coastal areas set at 25,800 tonnes, a decline of 32.6% compared to the corresponding period last year. 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 today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 10,400-10,500 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,800-11,000 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 11,700-11,900 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 12,200-12,400 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 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 mainly stay stable and down by 20-50 CNY/tonne in several regions. 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 keep rebounding, and some places are even faced with over stock. Meal futures on Dalian Commodity Exchange fall back after low opens today, and spot soybean meal in coastal regions drops by 10-30 CNY/tonne. 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 cottonseed meal market may pare gains in the near term.

(USD $1=CNY ¥6.91)