Today (Sep 9), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures rose on Tuesday on increasing demand and worries about crop yield potential. U.S. soybeans were rated 65% in good-to-excellent state against 66% in the previous week, and the market forecast the USDA would lower its U.S. soybean production estimates in monthly supply&demand reports due on Friday. Meal futures open low and decline on China’s Dalian Commodity Exchange today due to profit taking. Spot soybean meal prices go down 10-20 CNY/tonne at 2,910-3,000 CNY/tonne in coastal regions, in tepid trade. (Tianjin 3000, Shandong 2940-2970, Jiangsu 2900-2960, Dongguan 2910-2950, and Guangxi 2920-2940.) China is an active buyer of U.S. soybeans, so soybean arrivals will still be massive in coming months and domestic soybean crush now remains at the level of 2 mln tonnes per week. Domestic millers are pressured by swelling soybean meal inventories, which are 1.16 mln tonnes, with a sharp rise of 47% from a year earlier. These are curbing rises in meal prices. But strong U.S. soybean prices have given a lift to import cost. And some domestic crushers have sold nearly 80% of September soybean meal, owing to a sustained recovery in the breeding sector. In addition, soybean and corn production in China is also affected after Heilongjiang suffered damage from three typhoons recently. Millers have a strong sentiment to raise prices, under which soybean meal prices may fluctuate and maintain a strong trend. The market is awaiting the USDA report due on Friday, which will bolster meal prices in China if bullish as expected.

Imported rapeseed meal: U.S. soybean futures ended higher on Tuesday. But meal futures in China fall back today on profit taking. And rapeseed meal price in coastal regions settles down 10-20 CNY/tonne at 2,280-2,370 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, and soybean meal inventories in coastal regions increase by 47% to 1.16 mln tonnes from the corresponding period last year. Hence, some mills 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. In this case, rapeseed meal stocks in coastal areas have fallen for five weeks in a row. Accordingly, the supply is tightening, which may bolster rapeseed meal price. Consequently, short-term rapeseed meal price will probably fluctuate slightly at high levels. Buyers can wait for low and stable price to make certain replenishment.

Imported fishmeal: Imported fishmeal prices steady 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; and Peruvian Super Prime SD with 68% protein content is 11,200-11,500 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 today. U.S. soybean futures closed up on Tuesday. Meal futures on China’s Dalian Commodity Exchange fall back with low opens due to a profit taking, and spot soybean meal in coastal regions drops by 10-20 CNY/tonne. 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. On the other side, old cottonseed is pricey, pushing up the cost. Accordingly, factories have intention to prop up price. And livestock breeding is recovering, which 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)