Today (Sep 15), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures traded further higher on Monday, but meal futures swing fractionally on China’s Dalian Commodity Exchange today. Spot soybean meal prices steadily fluctuate by 10-20 CNY/tonne at 3,030-3,110 CNY/tonne in coastal regions, in tepid trade. (Tianjin 3110, Shandong 3050-3090, Jiangsu 3030-3080, Dongguan 3020-3100, and Guangxi 3050-3110.) The sharp rise in U.S. soybean prices is lending support to the cost side. Domestic soybean meal inventory is reducing owing to a recovery in the breeding sector and as people are stocking up for the National Day holidays. In the week as of September 11^th, domestic soybean meal inventories were 1.06 mln tonnes, a weekly decline of 8%. Moreover, many crushers have sold out over 90% of September soybean meal and also some forward contracts. And a global inflation expectation is in focus. These joint to bolster meal prices. But investors are buyers of oils futures due to their strong performance. And domestic soybean crush remains stubbornly high as China is still snapping up U.S. soybeans, and some millers have to quicken up deliveries to ease swelling soybean meal inventories. These factors will still curb rises in soybean meal prices. Overall, soybean meal market is predicted to fluctuate with an upward trend in the short term.

Imported rapeseed meal: U.S. soybean futures closed higher on Monday on China’s strong demand. Rapeseed meal futures on China’s Zhengzhou Commodity Exchange fall back after low opens today. And rapeseed meal price in coastal regions settles down 10-30 CNY/tonne at 2,360-2,430 CNY/tonne, seeing a light trading. The peak season of aquaculture will come to an end after October. Rapeseed inventory totals 456,000 tonnes, rising by 130% compared with the same period last year. Besides, China persistently purchases U.S. soybean, seeing a huge arrival at ports. Thus, soybean crush remains high, leading to a pressure from soybean meal inventory. These have depressed rapeseed meal price. 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 six weeks in a row. Accordingly, rapeseed meal supply is tightening, which may bolster rapeseed meal price. Therefore, short-term rapeseed meal price is likely to fluctuate in a narrow range. Buyers can stay on the sideline and make proper replenishment on the dips.

Imported fishmeal: Imported fishmeal prices rebound today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 9,800-9,900 CNY/tonne, up 100 CNY/tonne from yesterday; Peruvian higher-quality SD with 65% protein content is 10,300-10,400 CNY/tonne, up 100 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 10,800-11,000 CNY/tonne, up 100 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,200-11,300 CNY/tonne, up 100 CNY/tonne. There is still demand for fishmeal from aquaculture in southern China, so that local traders are in smooth shipment. Moreover, domestic fishmeal supply is decreasing as vessels from Peru are at a slow pace. Some traders are stalling sales today, which offers some support to the market. In the near term, domestic fishmeal market is predicted to steady and slightly rebound.

Stocks at ports: Huangpu 28,000 tonnes, Fuzhou 13,000 tonnes, Shanghai 19,000 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 by 20 CNY/tonne in several regions today. The surge in U.S. soybean has pushed up import cost, and the stockpiling ahead of China’s National Day has begun. Soybean meal stocks in coastal regions amount to 1.06 mln tonnes with a decline of 8% compared to the previous week. Besides, soybean meal price is boosted by inflation expectations. Moreover, oil cottonseed price is too high, pushing up the cost. Thus, manufacturers intend to raise price. Furthermore, livestock breeding is recovering, which may be positive for cottonseed meal market. But feed mills are waiting for the marketing of new cottonseed, weighing down cottonseed meal price. It is predicted that short-term cottonseed meal market may fluctuate in a narrow range.

(USD $1=CNY ¥6.82)