Today (Aug 26), the market for meals in China is shown as follows:

Soybean meal: The USDA reported export sales of 204,000 tonnes of soybean for delivery to China and 142,500 tonnes to unknown destinations, so U.S. soybean futures rallied on Tuesday on rising export demand along with concerns over deteriorating crop conditions. Meal futures expand their early gains on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 10-20 CNY/tonne to 2,850-2,960 CNY/tonne in coastal regions, in tepid trade. (Tianjin 2960, Shandong 2880-2920, Jiangsu 2850-2870, Dongguan 2850-2860, and Guangxi 2880-2900.) Domestic soybean meal prices are supported by a recovery in the breeding sector and as millers have a lot of outstanding contracts. But soybean meal stocks saw a weekly rise of 11% and a year-on-year rise of 56% to 1.14 mln tonnes in coastal regions, so that domestic crushing plants are facing swelling inventories and have to quicken up deliveries. Hence, soybean meal prices will have limited rises. China will ramp up purchases of U.S. soybeans, as trade negotiators from both sides agreed to continue pushing forward the implementation of the trade deal. This is also negative to medium-term soybean meal prices. Overall, short-term soybean meal prices will have limited space for bounces, and buyers are suggested not to chases after excessively high prices.

Imported rapeseed meal: U.S. soybean futures further rose on Tuesday due to worsening crop condition of crop and strong export of soybean. And meal futures in China today also go up. Rapeseed meal price in coastal regions settles up 10-30 CNY/tonne at 2,240-2,350 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. And many oil plants have basically sold out soybean meal stocks crushed in August, so the overall soy meal market still keeps strengthening. Likewise, rapeseed meal stocks decline to low levels consecutively, boosting its market. However, soybean crush remains super high due to the huge imports of soybean in August and September. Moreover, soybean meal inventories continue rising as the pace of soybean meal delivery has been slowed in recent two weeks. In addition, the weather condition like flood and typhoon has affected the demand for rapeseed meal, which sees no trading for two weeks in a row. 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.

Imported fishmeal: Imported fishmeal prices mostly go down today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 10,100-10,200 CNY/tonne, down 100-200 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,500-10,700 CNY/tonne, down 100-200 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 11,400-11,600 CNY/tonne, down100-200 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,800-12,100 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, 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 stay stable 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 10-20 CNY/tonne. This could bring cottonseed meal market some bullish support. It is predicted that cottonseed meal market may relatively remain flat in the near term.

(USD $1=CNY ¥6.91)