Today (Sep 16), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures trimmed gains to decline on Tuesday, as the crush was lower than the expected, the weather forecast the U.S. crop belt would embrace favorable weather conditions at the start of the harvest, and traders took profits. Meal futures extend and expand their early losses on China’s Dalian Commodity Exchange today. Spot soybean meal prices fall 20-50 CNY to 2,990-3,070 CNY/tonne in coastal regions, in tepid trade. (Tianjin 3070, Shandong 3025-3070, Jiangsu 3000-3060, Dongguan 2990-3060, and Guangxi 3010-3070.) Higher DCE crush margins in the wake of a rise in CNY and domestic oil and meal prices is sparking China’s imports of soybeans. Yesterday, China bought at least 3 cargoes of U.S. soybeans for December shipment from the Gulf and 4-6 cargoes of Brazilian new-season crops. China’s soybean crush maintains at a high level and some millers are choked up with soybean meal. Such fundamentals are unable to support soybean meal prices to keep increasing, coupled with the upcoming marketing of U.S. soybeans, so domestic soybean meal prices decline to adjust. But China’s breeding sector is in a recovery, of which sow stocks have risen by 37% and hog stocks by 31% from a year earlier, according to a report by China’s Ministry of Agriculture. In addition, buyers are stocking up for the National Day holidays. Hence, domestic soybean meal inventories dropped by 8% weekly to 1.06 mln tonnes in coastal regions. In addition, a global inflation expectation is in focus. Domestic millers are propping up prices, which will help constrain losses in soybean meal prices. Buyers can wait for low and stable prices to make appropriate replenishment.

Imported rapeseed meal: U.S. soybean futures ended lower on Tuesday. Meal futures in China fall back after low opens today. And rapeseed meal price in coastal regions settles down 30-60 CNY/tonne at 2,310-2,370 CNY/tonne, seeing a light trading. The peak season of aquaculture is drawing to a close. Besides, China persistently purchases U.S. soybean, seeing a huge arrival at ports. Thus, soybean crush remains high, putting pressure from soybean meal inventory on oil plants. And some plants accelerate the deliveries facing over stock. 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 limit downward space of rapeseed meal price. Buyers can stay on the sideline and make proper replenishment on the dips.

Imported fishmeal: Imported fishmeal prices are stable with a partial rise 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 10,300-10,400 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 10,800-11,000 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,200-11,400 CNY/tonne, up 100 CNY/tonne. Terminal consumers are still purchasing fishmeal on immediate demand, and feed enterprises are stocking up for the Mid-autumn Festival and National Day holidays. In addition, there is a delay in the arrival of vessels from Peru recently. Hence, fishmeal supply is decreasing in domestic market and some traders are stalling sales to prop up prices. 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 decline by 60-100 CNY/tonne in some regions today. U.S. soybean stopped rising and pared gains on Tuesday on lower-than-expected crush and favorable weather for crop harvest. Meal futures on China’s Dalian Commodity Exchange extend declines after low opens today, and spot soybean meal in coastal regions down by 20-50 CNY/tonne. The decrease in soybean meal price has been bearish for cottonseed meal market. Besides, buyers are still cautious as new cottonseed is about to go marketing, so they are waiting for the marketing of new cottonseed meal. Hence, these have weighed down cottonseed meal price. Moreover, old cottonseed price is too high, pushing up the cost. And feed mills intend to prop up price as livestock breeding is recovering. It is predicted that short-term cottonseed meal market may move with fluctuations.

(USD $1=CNY ¥6.78)