Today (Aug 27), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures rose on Wednesday, bolstered by continuing sales to China and as hot and dry weather pattern in the Midwest could damage soybean yield. Meal futures open low and decline on China’s Dalian Commodity Exchange today as investors trim their meal positions and turn to oils. Spot soybean meal prices go down 10-20 CNY/tonne to 2,840-2,950 CNY/tonne in coastal regions, in tepid trade. (Tianjin 2950, Shandong 2870-2900, Jiangsu 2840-2850, Dongguan 2840-2850, and Guangxi 2850-2880.) China’s soybean stocks amount to 6.36 mln tonnes in coastal regions due to huge imports, an increase of 18% from a year earlier. And its soybean meal stocks also rose 11% from the previous week to 1.14 mln tonnes, as soybean crush remained at a high level and soybean meal market had been in tepid trade and slow delivery for weeks. Domestic millers are rushing to make deliveries to ease swelling inventories, which has affected meal prices. However, a rise in U.S. soybean prices has also increased the import cost. Besides, China’s breeding sectors have been in a recovery and domestic crushers still have many outstanding contracts, which will also limit the decline in meal prices. Overall, short0term soybean meal prices will keep range-bound. Buyers are suggested to keep light stockpiles as the upcoming new U.S. soybeans could hit domestic meal prices.

Imported rapeseed meal: U.S. soybean futures rose on Wednesday. But meal futures in China today pare gains after low opens due to an arbitrage taken by buying oils and selling meals. Rapeseed meal price in coastal regions settles down 10-20 CNY/tonne at 2,230-2,330 CNY/tonne, seeing a light trading. Besides, soybean crush remains super high as soybean arrival at ports is huge in quantity, so soybean meal inventory in coastal regions continues rising. Moreover, the weather condition has affected the recovery of demand for rapeseed meal, and there is no trading volume in market, which weighs on rapeseed meal market. However, rapeseed crush still stays at low levels due to limited rapeseed imports amid tensions between China and Canada. And oil mills have many contracts remain to be fulfilled, which may support meals prices. Therefore, short-term rapeseed meal price will probably fluctuate in a narrow range. Buyers can wait for low and stable price to make proper replenishment.

Imported fishmeal: Imported fishmeal prices are stable with a partial decline today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 10,100-10,200 CNY/tonne, down 100 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,500-10,700 CNY/tonne, down 100 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 11,400-11,600 CNY/tonne, down100 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,800-12,100 CNY/tonne, down 100 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 and tend to reduce in northern markets, 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. Soybean meal stocks in coastal regions increase to 1.14 mln tonnes, up by 11% than a week earlier. In this case, some plants are faced with over stock, which hits meals prices. Meal futures on Dalian Commodity Exchange today fall back after low opens, and spot soybean meal in coastal regions declines by 10-20 CNY/tonne. 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. It is predicted that cottonseed meal market may relatively remain flat in the near term.

(USD $1=CNY ¥6.89)