Today (Sep 21), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures continued trading higher last Friday, but meal futures fractionally swing and trade below the previous close on China’s Dalian Commodity Exchange today. Spot soybean meal prices steadily fluctuate by 10-20 CNY to 3,070-3,140 CNY/tonne in coastal regions, attracting some low-level purchases. (Tianjin 3140, Shandong 3110-3140, Jiangsu 3080-3110, Dongguan 3070-3100, and Guangxi 3070-3100.) In consideration of massive soybean imports and in order to meet the festival demand, domestic crushers raised soybean crush to a historical high of 2.18 mln tonnes last week and are likely to pick it up to 2.19 mln tonnes this week. And domestic investors are buying in oils futures to make profits due to their strong performance, which is also curbing meal prices. However, the import cost side continues to find strong support as U.S. soybean futures get nearly to 1,050 cent. Moreover, domestic millers have been delivering goods at a brisker pace owing to growing demand from the breeding sectors and as buyers are stocking up for the National Day holidays. In the week as of September 18^th, domestic soybean meal stocks fell for a third week by 4% to 1.02 mln tonnes in coastal regions. Overall, soybean meal market is predicted to have little downside space and to keep range-bound ahead of the holidays.

Imported rapeseed meal: U.S. soybean futures sharply rose further on Friday on strong export demand. Rapeseed meal futures on China’s Zhengzhou Commodity Exchange swing to go up today. And rapeseed meal price in coastal regions settles at 2,380-2,450 CNY/tonne, seeing a light trading. Canada declared to abandon free trade talks with China that were initiated four years ago, souring ties between the two countries. Consequently, rapeseed crush still stays at low levels due to limited rapeseed imports. In this case, rapeseed meal stocks in coastal areas have fallen for seven weeks in a row, declining by 33% to 2,000 tonnes. Accordingly, rapeseed meal supply is tightening. Besides, many soybean meal contracts in oil plants remain to be fulfilled, so the overall soybean meal market still stay strong, boosting short-term rapeseed meal to move at high levels. Nevertheless, soybean crush hits a new record and the peak season of aquaculture will draw 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 with a slight rise.

Stocks at ports: Huangpu 25,000 tonnes, Fuzhou 13,000 tonnes, Shanghai 15,000 tonnes, Tianjin 700 tonnes, Dalian 5,000 tonnes, Fangchenggang 1,100 tonnes and 4,000 tonnes at other ports.

FOB quotes from foreign markets today: Oct/Nov shipments are quoted higher by 10 USD at 1,260 USD/tonne for Peruvian Standard with 65% protein content and at 1,490 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 steadily rise by 10-50 CNY/tonne today. U.S. soybean futures have approached 1,050 cents, pushing up the cost. The livestock breeding is recovering gradually, and the stockpiling ahead of China’s Mid-Autumn Festival and National Day is still ongoing. Accordingly, oil plants accelerate the deliveries, and soybean meal stocks in coastal regions have fallen to less than 1 mln tonnes for the consecutive third week. Thus, meals prices are bolstered. In addition, factories intend to raise price as old cottonseed price remains too high, offering support to cottonseed meal market. However, buyers are still cautious as new cottonseed is about to go marketing, which tentatively limits the upward momentum of cottonseed meal market. It is predicted that short-term cottonseed meal market may fluctuate to stay strong.

(USD $1=CNY ¥6.76)