Today (Sep 18), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures sharply rose on Thursday on brisk demand from China and fund-driven buying, and meal futures expand their early gains on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 40-80 CNY to 3,070-3,140 CNY/tonne in coastal regions, attracting some low-level purchases. (Tianjin 3140, Shandong 3110-3140, Jiangsu 3065-3110, Dongguan 3070-3100, and Guangxi 3070-3100.) The import cost of soybeans has been lifted by sharp rises in U.S. soybean futures. And domestic soybean meal inventories keep decreasing owing to growing demand from the breeding sectors and as buyers are stocking up for the National Day holidays. So in the short term, soybean meal prices may fluctuate and go strengthening. But domestic soybean crush remains high due to huge soybean imports so that some millers are still choked up with ballooning meal stockpiles, and investors are buyers of oils futures due to their strong performance, which will lead to smaller gains in soybean meal prices than in oils.

Imported rapeseed meal: U.S. soybean futures sharply rose further on Thursday on China’s strong demand. Meal futures in China extend the opening gains today. And rapeseed meal price in coastal regions settles up 40 CNY/tonne at 2,380-2,450 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. Accordingly, rapeseed meal supply is tightening. Besides, soybean meal stocks also keep falling. And many oil plants have more soybean meal contract for forward months. Consequently, the overall soybean meal market still swings to stay strong, boosting short-term rapeseed meal to move at high levels. Nevertheless, soybean crush remains high due to huge imports in later period, and some oil plants still face with over stock. Oil futures post a strong performance, which leads the rally in meal futures to relatively slow.

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 26,600 tonnes, Fuzhou 13,000 tonnes, Shanghai 17,200 tonnes, Tianjin 700 tonnes, Dalian 4,200 tonnes, Fangchenggang 1,100 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 today. Soybean crush remains high due to huge imports, so some oil plants are facing over stock. Oil futures post a strong performance and investors take an arbitrage by buying oils and selling meals. In this case, the upward momentum in meals market slows. 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 surge after high opens today, and spot soybean meal up by 40-80 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 little volatility.

(USD $1=CNY ¥6.76)