Today (Aug 25), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures rose on Monday on good export data and expectations for lower good-to-excellent crop conditions. U.S. and Chinese trade negotiators held a phone call on Tuesday morning Beijing time, and both sides were upbeat on implementing the Phase One Trade Deal and agreed to continue pushing forward the implementation. U.S. soybean futures are bolstered to expand rises today, and meal futures also expand their early gains on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 20-50 CNY/tonne to 2,820-2,940 CNY/tonne in coastal regions, with stronger trade on low levels. (Tianjin 2940, Shandong 2870-2900, Jiangsu 2835-2860, Dongguan 2820-2860, and Guangxi 2850-2890.) Soybean meal prices are higher in China, buoyed by a recovery in breeding industry and as millers have a lot of outstanding contracts. But China’s soybean meal inventories keep increasing due to a slower pace in delivery and as soybean crush stay stubbornly high under huge imports. Domestic millers are quickening up deliveries due to swelling meal inventories, which is also capping rises in meal prices. However, China will ramp up purchases of U.S. soybeans in according with the trade deal, which will be negative to the mid-to-long-term trend of soybean meal market. Overall, short-term bounces in soybean meal prices are predicted to be limited, and participants are suggested to remain cautious about in the medium term (when U.S. soybeans will go marketing in huge quantities).

Imported rapeseed meal: U.S. soybean futures closed higher on Monday as export performed well and the good-to excellent rate of crop lowered. Top U.S. and Chinese trade representatives held a phone call on Monday, and both sides agreed to continue pushing forward the implementation of the Phase 1 trade deal. US soybean on CBOT today further rises by about 8 cents on the news. And meal futures in China today also go up after high opens. Rapeseed meal price in coastal regions settles up 20-30 CNY/tonne at 2,240-2,330 CNY/tonne, seeing a light trading. Besides, rapeseed crush still stays at low levels due to limited rapeseed imports amid tensions between China and Canada. In this case, rapeseed meal inventory in coastal areas has fallen for three weeks in a row. Moreover, livestock breeding is recovering gradually, boosting rapeseed meal market. However, soybean crush remains super high due to the huge imports of soybean in August and September, thereby soybean meal stocks in coastal areas continue picking up. Last week, soybean meal inventory increased by 10% to 1.14 mln tonnes, which limited price rises of meal products. Thus, the upward space of short-term rapeseed meal price is predicted to be limited as well, and the market will probably fluctuate strongly in a narrow range. Buyers can wait for low and stable price to make proper replenishment and should be cautious in chasing up price (Only for reference).

Imported fishmeal: Imported fishmeal prices mostly go down today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 10,200-10,400 CNY/tonne, down 200-300 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,700-10,800 CNY/tonne, down 200-300 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 11,500-11,700 CNY/tonne, down 200-300 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 12,000-12,300 CNY/tonne, down 200-300 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, so that many traders are rushing to lock profits. This is adding bearish sentiment to the market.

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.

Cottonseed meal: Cottonseed meal prices mainly stay stable and decline by 20-100 CNY/tonne in some regions today. Soybean crush 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 climb up consecutively, and some plants are even faced with over stock. Additionally, 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. Meal futures on Dalian Commodity Exchange broaden the high opens, and spot soybean meal in coastal regions rises by 20-50 CNY/tonne. This could bring cottonseed meal market some bullish support. It is predicted that cottonseed meal market may move with fluctuations in the near term.

(USD $1=CNY ¥6.92)