Today (Sept 1), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures extended gains on Monday but settled below the intraday high, and meal futures open low to decline on China’s Dalian Commodity Exchange today on profit taking. Spot soybean meal prices go down 20-50 CNY/tonne to 2870-2980 CNY/tonne in coastal regions, attracting some low-level purchases. (Tianjin 2980, Shandong 2915-2930, Jiangsu 2870-2910, Dongguan 2870-2890, and Guangxi 2900-2910.) China’s soybean meal inventories rose 5% to 1.2 mln tonnes, as its market had been in dismal trade and soybean crush remained high due to huge imports. Some millers are seeking to ramp up shipments, which may limit the upward space of meal prices. But the overall weather pattern will continue to bull the U.S. soybean futures, for little rainfall is forecast in the next fourteen days. And China’s strong demand is also bolstering U.S. soybean prices to keep firm. Overall, short-term soybean meal prices will keep range-bound and strengthening, and buyers are suggested to keep appropriate stockpiles and remain cautious in chasing after higher prices.

Imported rapeseed meal: U.S. soybean futures rose further on Monday but down from the intraday high. And meal futures in China today fall back after low opens. Rapeseed meal price in coastal regions settles down 20-50 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 inventories in coastal regions continue rising, which drags down meal prices. However, rapeseed crush still stays at low levels due to limited rapeseed imports amid tensions between China and Canada. Moreover, aquaculture has entered into a peak season, and livestock breeding is recovering gradually. In this case, rapeseed meal stocks in coastal regions have fallen for four weeks in a row, tightening the supply. This may limit downward space of rapeseed meal market. Therefore, short-term rapeseed meal price will probably fluctuate to stay strong. Buyers can make proper replenishment upon low and stable price.

Imported fishmeal:  Imported fishmeal prices steady today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 9,900-10,000 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,400 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 11,300 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,600-11,900 CNY/tonne. Fishmeal shipments are at relatively brisk pace in southern China with the demand from aquaculture, so that local traders are reluctant to sell at lower rates. But the overall demand is disappointing in China now and new fishmeal cargoes are arriving at domestic ports and of lower cost, so traders are rushing to lock in profits. This is negative to the overall fishmeal market in China.

Stocks at ports: Huangpu 44,000 tonnes, Fuzhou 14,000 tonnes, Shanghai 26,000 tonnes, Tianjin 1,000 tonnes, Dalian 6,000 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 with a decline in several regions today. Soybean crush maintain high levels as soybean arrival at ports is huge in quantity. Soybean meal stocks in coastal regions increase by 5% to 1.2 mln tonnes from last week. Meal futures on Dalian Commodity Exchange fall back with low opens today, and spot soybean meal drops by 20-50 CNY/tonne in coastal regions. Besides, 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 meal trading gets lighter, depressing its 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 fluctuate in a narrow range in the near term.

(USD $1=CNY ¥6.85)