Today (Sep 8), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures were not available on Monday as markets were shut for Labour Day, and meal futures swing slightly on China’s Dalian Commodity Exchange today. Spot soybean meal prices steadily fluctuate by 10-20 CNY/tonne at 2,930-3,020 CNY/tonne in coastal regions, in tepid trade. (Tianjin 3020, Shandong 2950-2970, Jiangsu 2920-2970, Dongguan 2930-2960, and Guangxi 2940-2960.) Soybean crush in China remains stubbornly high due to huge soybean imports, and some mills have to quicken up soybean meal shipment under swelling inventories. Investors are sellers in the meal market as oils futures are strong, which will also limit the rise in meal prices. However, U.S. soybean futures keep a firm trend on concerns of the dry weather and on robust demand from China. And soybean and corn production in China is also affected after Heilongjiang suffered damage from three typhoons recently. Overall, short-term soybean meal prices will hardly fall and will fluctuate to extend an uptrend.

Imported rapeseed meal: U.S. soybean market was closed on Monday. Rapeseed meal futures on China’s Zhengzhou Commodity Exchange swing to lower today. And rapeseed meal price in coastal regions settles down 10-30 CNY/tonne at 2,300-2,370 CNY/tonne, seeing a light trading. With large quantity of soybean arriving at ports, soybean crush maintains a high level. Some soyoil plants still face an overstock in soybean meal inventory, so they are accelerating the delivery, which weighs on meals prices. However, rapeseed crush still stays at low levels due to limited rapeseed imports amid tensions between Ottawa and Beijing. Moreover, aquaculture has been in a peak season and livestock breeding is also recovering. In this case, rapeseed meal stocks in coastal regions decline by 43% to 6,300 tonnes, and the inventories of rapeseed meal granule decrease by 58% to 25,000 tonnes. Accordingly, the supply is tightening, which may limit downward space of rapeseed meal price. Consequently, short-term rapeseed meal price will probably fluctuate to stay strong. Buyers can wait for low and stable price to make certain 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 9,800-9,900 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,300 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 10,700-11,200 CNY/tonne, down 100-300 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,200-11,500 CNY/tonne, down 200 CNY/tonne. 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 36,000 tonnes, Fuzhou 14,000 tonnes, Shanghai 22,000 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 20 CNY/tonne in several 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. However, Heilongjiang recently has been whacked by power typhoon for three times, distinctly affecting the output of soybean and corn. This is boosting market. On the other side, old cottonseed is pricey, pushing up the cost. Accordingly, factories have intention to prop up price. 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)