Today (Sep 25), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures further dropped in overnight trading as investors took profit on harvest pressure, and meal futures moderately decline on China’s Dalian Commodity Exchange (DCE) today. Spot soybean meal prices go down 10-30 CNY to 3,000-3,070 CNY/tonne in coastal regions in tepid trade. (Tianjin 3070, Shandong 3030-3070, Jiangsu 3030-3050, Dongguan 3000-3050, and Guangxi 3040-3060.) China’s oil mills are operating at high rates under continuous soybean arrivals at ports, while buyers take a cautious approach in soybean meal market, which are curbing meal prices. But domestic soybean meal inventories have been dropping for three consecutive weeks owing to a recovery in the breeding industry and as downstream buyers are stocking and picking up goods ahead of the Mid-autumn Festival and National Day holidays. In the meantime, net crush margins for U.S. soybeans have fallen below zero on the DCE in the wake of a quick decline in soybean oil prices, which is also supporting meal prices. On the whole, global stock markets suffered a setback on concerns over the resurgence of the pandemic as cases rapidly rose in the Europe, which also acted as a drag on bulk commodity market. Besides, U.S. farmers are speeding up soybean harvests. Hence, domestic soybean meal prices will probably follow futures to fluctuate to adjust in the near term, and buyers can wait for low and stable prices to make appropriate replenishment.  

Imported rapeseed meal: Due to fears about soybean harvest, investors were selling off stocks to take profit. Consequently, U.S. soybean futures plummeted again on Thursday. Meal futures in China moderately drop today. And rapeseed meal price in coastal regions settled down 10-30 CNY/tonne at 2,300-2,420 CNY/tonne, seeing a light trading. Oil plants keep operating amid strong shipments to China. Consequently, soybean crush records new high, dampening 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 seven weeks in a row. But oil plants speed up the deliveries due to stockpiling ahead of holidays, so soybean meal inventory also has declined for the consecutive third week. Accordingly, rapeseed meal price may be bolstered, and short-term rapeseed meal price is predicted to move with fluctuations. Buyers can stay on the sideline and make proper replenishment on the dips.

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. In China, there is routine consumption on fishmeal among terminal buyers, and feed manufacturers are also appropriately stocking up for the 8-day holidays, so traders are making some shipments. Moreover, fishmeal imports from Peru are at a slow pace, while domestic stocks are not huge, which combine to cause a tight supply in domestic market. Traders are stalling sales now, which also lends some support to the market. In the near term, domestic fishmeal market is predicted to steady with a slight rise.

Stocks at ports: Huangpu 19,000 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 1,270 USD/tonne for Peruvian Standard with 65% protein content and at 1,500 USD/tonne for Peruvian super with 68% protein content. Chilean Standard with 65% protein content is quoted at 1,260 USD/tonne, and super with 68% protein content at 1,490 USD/tonne.

Cottonseed meal: Cottonseed meal prices fluctuate by 50-100 CNY/tonne in several regions today. Global stocks collapse on the second wave of COVID-19 outbreak in Europe and America. China keeps purchasing soybean, seeing strong shipments to China. In this case, soyoil plants keep operating and soybean crush records new high. Meal futures on Dalian Commodity Exchange moderately fall back today, and spot soybean meal declines by 10-30 CNY/tonne in coastal regions. In addition, buyers are wary of making purchase as new cottonseed is about to enter market, which depresses cottonseed meal price. But old cottonseed price remains too high before new cottonseed goes marketing, and the livestock breeding is recovering gradually. Thus, factories intend to prop up price. It is predicted that short-term cottonseed meal market may fluctuate in a narrow range.

(USD $1=CNY ¥6.81)