Today (Sep 7), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures rose last Friday, and meal futures open high and expand gains on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 20-60 CNY/tonne at 2,870-2,980 CNY/tonne in coastal regions. (Tianjin 3020, Shandong 2940-2970, Jiangsu 2910-2970, Dongguan 2930-2960, and Guangxi 2940-2980.) The market forecasts that the USDA in its report on Friday is likely to lower soybean estimate to 52 bu per acre from 53.3 bu/acre last month, in consideration of a spell of dryness. The demand for soybean meal in China now is increasing in line with a sustained recovery in livestock breeding and as soybean meal has a bigger share in feed formula due to its higher value-to-price ratio. Domestic millers have sold out 70-80 percent of September soybean meal so far. These are shoring up meal market. In addition, soybean crush still stayed high at 1.95 mln tonnes last week in spite of a 4% decline, and soybean meal inventories also dropped 3.4% to 1.16 mln tonnes, a sign that buyers are active in soybean meal market in the wake of gains in futures. It is worth noting that soybean and corn production is massively affected after a violent typhoon struck in Heilongjiang, which will also be bullish to the market. Short-term soybean meal prices will still swing and extend an uptrend, and buyers are suggested to buy dips to keep safety stockpiles.

Imported rapeseed meal: U.S. soybean futures further rose on Friday. And meal futures in China extend the opening gains today. Rapeseed meal price in coastal regions settles up 40-50 CNY/tonne at 2,310-2,400 CNY/tonne, seeing a light trading. Rapeseed crush still stays at low levels due to limited rapeseed imports amid tensions between Ottawa and Beijing. In this case, rapeseed meal stocks in coastal regions have fallen for the consecutive fifth weeks. And rapeseed meal inventory declined by 43% to 6,300 tonnes last week. Accordingly, the supply is tightening. Moreover, there are many contracts of soybean meal remained to be fulfilled for the moment. Consequently, the overall soybean meal market still keep strengthening, boosting rapeseed meal price to rebound. It is predicted that short-term rapeseed meal price will probably fluctuate to trend up.

Imported fishmeal: Imported fishmeal prices decline today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 9,800-9,900 CNY/tonne, down 100 CNY/tonne from last Friday; Peruvian higher-quality SD with 65% protein content is 10,300 CNY/tonne, down 100 CNY/tonne from last Friday; Peruvian higher-quality SD with 67% protein content is 11,000-11,200 CNY/tonne, down 200 CNY/tonne from last Friday; and Peruvian Super Prime SD with 68% protein content is 11,400-11,500 CNY/tonne, down 200 CNY/tonne from last Friday. New freshmeal vessels are still reaching ports and of lower cost, in addition to the overall weaker-than-expected demand, so domestic traders are seeking to pocket profits and offering favorable prices for bulk purchases. This is bringing bearish influence to domestic fishmeal market.

Stocks at ports: Huangpu 37,000 tonnes, Fuzhou 14,000 tonnes, Shanghai 23,000 tonnes, Tianjin 1,000 tonnes, Dalian 5,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports.

FOB quotes from foreign markets today: Oct/Nov shipments are quoted 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 50-60 CNY/tonne in some regions today. For the moment, the price of cottonseed meal is significantly higher than soybean meal, so feed mills adjust the feed formula due to its lower cost performance compared with soybean meal. As people’s purchase intention is not strong, cottonseed factories have to sell them at discounts. Moreover, feed mills are staying on the sideline with the forthcoming marketing of new cottonseed. These have depressed cottonseed meal price. But old cottonseed is pricey, pushing up the cost. Accordingly, factories have intention to prop up price. Furthermore, livestock breeding is recovering gradually. Meal futures on Dalian Commodity move up after high opens, and spot soybean meal in coastal regions rises by 20-60 CNY/tonne. This may be positive for cottonseed meal market. It is predicted that cottonseed meal market may fluctuate in a narrow range in a short term.

(USD $1=CNY ¥6.84)