Today (Sep 14), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures sharply rose last Friday and stand above 1,000 cents today on a bullish USDA report and strong export data, and meal futures also surge on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 40-110 CNY/tonne at 3,015-3,130 CNY/tonne in coastal regions, in tepid trade. (Tianjin 3130, Shandong 3045-3100, Jiangsu 3015-3090, Dongguan 3020-3100, and Guangxi 3050-3070.) The sharp rise in U.S. soybean prices is lending support to the cost side. Moreover, the breeding sector is in a recovery in China, and soybean meal has a higher value-to-price ratio than other meals. And domestic millers have a lot of soybean meal contracts to be fulfilled. These together bolster soybean meal prices. In spite of high soybean crush, soybean meal stockpiles are declining as buyers are stocking up for the holidays. Besides, the market is still betting on the weather in the U.S. crop belt and an inflation expectation. Overall, domestic soybean meal prices will probably swing to post an uptrend in the short run.

Imported rapeseed meal: U.S. soybean futures soared on Friday and topped 1,000 cents today on strong export. But meal futures in China widely increase today. And rapeseed meal price in coastal regions settles up 60-80 CNY/tonne at 2,370-2,450 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 areas have fallen for six weeks in a row. And rapeseed meal inventories decline by 52% to 3,000 tonnes as of last Friday. Thus, rapeseed meal supply is tightening. Besides, many soybean meal contracts in oil plants remain to be fulfilled, strengthening the overall soybean meal market. These have together boosted rapeseed meal market, and the trend will stay strong in the near term. In addition, soybean crush remains high, and the peak season of aquaculture will come to an end after October. Thus, buyers may be cautious in chasing up price.

Imported fishmeal: Imported fishmeal prices are stable 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 10,700-11,000 CNY/tonne, down 200 CNY/tonne from last Friday; and Peruvian Super Prime SD with 68% protein content is 11,200-11,300 CNY/tonne, down 200 CNY/tonne from last Friday. New fishmeal cargoes are still arriving at domestic ports this month and of lower cost, so that some traders choose to book profits with favorable prices. However, there is demand from aquaculture in southern regions where high temperatures gradually fade away, so traders are able to ship at a fair pace and become reluctant to sell at low prices, which lends some support to fishmeal market. Overall, domestic fishmeal prices will probably steady with slight declines in the near term.

Stocks at ports: Huangpu 29,000 tonnes, Fuzhou 13,000 tonnes, Shanghai 20,000 tonnes, Tianjin 1,000 tonnes, Dalian 4,000 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 rise in several regions today. U.S. soybean surged on Friday on bullish report by USDA and strong export. Meal futures on China’s Dalian Commodity Exchange also jump higher today, and spot soybean meal in coastal regions up by 40-110 CNY/tonne. Besides, oil cottonseed price is too high, pushing up the cost. Thus, manufacturers intend to raise price. Moreover, livestock breeding is recovering, which may boost cottonseed meal market. But factories are not active in purchasing due to slack demand for cottonseed meal. Furthermore, feed mills are staying on the sideline with the forthcoming marketing of new cottonseed. In consequence, cottonseed meal price still not follow soybean meal to go up. It is predicted that cottonseed meal market may keep steady with a rise in a short term.

(USD $1=CNY ¥6.84)