Today (Sep 10), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures continued trading higher on Wednesday on robust exports and as dry weather could lead to a decline in U.S. soybean yield. Meal futures extend their early gains on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 10-20 CNY/tonne at 2915-3010 CNY/tonne in coastal regions, in tepid trade. (Tianjin 3010, Shandong 2950-2980, Jiangsu 2915-2950, Dongguan 2930-2960, and Guangxi 2940-2970.) Strong U.S. soybean prices have given a lift to import cost, and Chinese millers now have a lot of outstanding contracts, owing to a sustained recovery in the breeding sector. Hence, millers have a strong sentiment in supporting prices, bolstering meal prices in the country. But soybean arrivals at domestic ports have been huge and soybean crush also stay stubbornly high, so that soybean meal stocks have been rising. Swelling soybean meal inventories are forcing millers to quicken up deliveries, which still curbs the rises in meal prices. In the short term, soybean meal market will fluctuate to keep a strong trend. Buyers are suggested to keep safety stocks and not to chase after higher prices excessively.

Imported rapeseed meal: U.S. soybean futures ended higher on Wednesday. Rapeseed meal futures on China’s Zhengzhou Commodity Exchange swing to lower today. And rapeseed meal price in coastal regions settles down 10 CNY/tonne at 2,280-2,350 CNY/tonne, seeing a light trading. The price spread of soybean meal with rapeseed meal is narrowed, and the peak season of aquaculture is drawing to a close. Accordingly, the trading in rapeseed meal is not considerable. With large quantity of soybean arriving at ports, soybean crush maintains a high level. Hence, rapeseed meal price is depressed by these factors. 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. As a result, 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 with a 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 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,200-11,500 CNY/tonne, down 100 CNY/tonne. New freshmeal vessels are still reaching domestic ports and of lower cost. The majority of traders are choosing to book profits by offering favorable prices in order to lessen arrival and stockpile pressure, albeit good demand in southern China. This is bringing bearish influence to domestic fishmeal market.

Stocks at ports: Huangpu 34,000 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 and partly fluctuate by 50-70 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. U.S. soybean futures further rose on Wednesday. Meal futures on China’s Dalian Commodity Exchange move up after high opens, and spot soybean meal in coastal regions increases by 10-20 CNY/tonne. In addition, 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 ¥6.83)