Today (Sept 2), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures further climbed but narrowed down gains on Tuesday, and meal futures fractionally swing on China’s Dalian Commodity Exchange today. Spot soybean meal prices fluctuate by 10-20 CNY/tonne to 2,870-2,970 CNY/tonne in coastal regions. (Tianjin 2970, Shandong 2915-2920, Jiangsu 2860-2910, Dongguan 2860-2880, and Guangxi 2880-2900.) U.S. soybean futures keep a firm trend on the hype of a dry weather pattern across the crop belt, and a sharp rise in premium for Brazil’s old soybeans has spiked the import cost. The consumption of soybean meal goes up in China with a recovery in livestock breeding and as soybean meal itself has a higher value-to-price ratio than other meals in feed. With a lot of outstanding contracts in hand, domestic millers now are propping up soybean meal prices, which is a buoyant to the market. But 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. 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 continued rising on Tuesday. And meal futures in China fluctuate slightly today. Rapeseed meal price in coastal regions fluctuates by 10 CNY/tonne at 2,240-2,340 CNY/tonne, seeing a light trading. Besides, soybean crush remains super high as soybean arrival at ports is huge in quantity. Soybean crush is projected to reach 2.04 mln tonnes and 2.07 mln tonnes over this week and next week, respectively. In this case, soybean meal inventory in coastal regions keeps rebounding, depressing meals prices. However, rapeseed crush still stays at low levels due to limited rapeseed imports amid tensions between China and Canada. And rapeseed meal stocks in coastal regions have fallen for four weeks in a row, tightening the supply. This may underpin rapeseed meal price. Therefore, short-term rapeseed meal price will probably fluctuate narrowly. Buyers can make proper replenishment upon low and stable price.

Imported fishmeal: Imported fishmeal prices steady with a partial decline today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 9,900 CNY/tonne, down 100 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,300-10,400 CNY/tonne, down 100 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 11,200-11,300 CNY/tonne, down 100 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,600-11,800 CNY/tonne, down 100 CNY/tonne. The overall demand is disappointing in China now and new fishmeal cargoes are arriving at domestic ports and of lower cost, so that traders are rushing to lock in profits and prices fall further at some ports today. This is negative to the overall fishmeal market in China.

Stocks at ports: Huangpu 42,000 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 higher 30 USD at 1,250 USD/tonne for Peruvian Standard with 65% protein content and at 1,480 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 of 20 CNY/tonne 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. Some oil plants accelerate the delivery due to overstock, which curbs meals prices. 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 ¥6.84)