Today (Sep 17), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures posted massive gains on Wednesday on strong demand from China, but meal futures just climb fractionally on China’s Dalian Commodity Exchange today. Spot soybean meal prices partially go up 10-30 CNY to 3,020-3,090 CNY/tonne in coastal regions; buyers are not very active as futures prices set back after rushing higher in earlier trade. (Tianjin 3090, Shandong 3030-3070, Jiangsu 3030-3060, Dongguan 3020-3060, and Guangxi 3040-3070.) The rise in U.S. soybean futures is lending support to the cost side. And China’s soybean meal stocks keep decreasing with a recovery in the breeding sector and as buyers set to stock up for the National Day holidays. In the week as of Sept 11, soybean meal stocks fell 8% weekly to 1.06 mln tonnes in domestic coastal regions. Furthermore, many millers have also signed a lot of forward contracts and are propping up prices. However, investors are buyers of oils futures due to their strong performance. And China’s soybean crush stays stubbornly high due to huge soybean imports, so that some millers have to quicken up deliveries under swelling meal inventories. Overall, soybean meal prices will probably fluctuate and keep relatively strong in the short run.

Imported rapeseed meal: U.S. soybean futures sharply rose on Wednesday. Meal futures in China move lower after high opens today. And rapeseed meal price in coastal regions settles up 10 CNY/tonne at 2,320-2,380 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. Accordingly, rapeseed meal supply is tightening. In addition, soybean meal stocks have decreased by 8% to 1.06 mln tonnes. And many oil plants have more soybean meal contract for forward months. Consequently, the overall soybean meal market maintains strong, boosting short-term rapeseed meal to fluctuate at high levels. Nevertheless, soybean crush remains high and the peak season of aquaculture is drawing to a close after October, which may affect buyers’ enthusiasm in chasing up price.

Imported fishmeal: Imported fishmeal prices are stable 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. 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 and domestic fishmeal stocks get relatively tight at present. 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 27,000 tonnes, Fuzhou 13,300 tonnes, Shanghai 17,800 tonnes, Tianjin 700 tonnes, Dalian 4,400 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 50 CNY/tonne in several regions today. Oil futures post a strong performance and investors take an arbitrage by buying oils and selling meals. China still persistently purchases U.S. soybean, so soybean arrival at ports is large in quantity. In this case, soybean crush maintains a high level, which leads some oil plants facing over stock to speed up the deliveries. This has depressed soybean meal price. 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. Meal futures on Dalian Commodity Exchange edge up today, and spot soybean meal partly up by 10-30 CNY/tonne in coastal regions. 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 ¥6.77)