Today (Sep 28), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures bounced back technically last Friday, and meal futures mildly climb on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 10-40 CNY to 3,030-3,130 CNY/tonne in coastal regions in tepid trade. (Tianjin 3130, Shandong 3050-3070, Jiangsu 3040-3060, Dongguan 3030-3060, and Guangxi 3040-3060.) China’s livestock and poultry industry embraces a big recovery, and net crush margins for U.S. soybeans have turned negative on the DCE in the wake of a steep decline in soybean oil prices, which are supporting soybean meal prices. However, soybean meal inventory has snapped the decline to rise this week, for soybean crush hit a fresh high under huge soybean imports. Some mills are facing swelling meal inventories while buyers will complete stocking up for holidays, which is curbing meal prices. Overall, soybean meal market is predicted to have little upward space and follow futures to fluctuate at a narrow range in the short term.

Imported rapeseed meal: U.S. soybean futures closed higher on Friday as the bulls buy on the dips. Rapeseed meal futures on China’s Zhengzhou Commodity Exchange fluctuate to lower today. And rapeseed meal price in coastal regions settles down 10 CNY/tonne at 2,290-2,400 CNY/tonne, seeing a light trading. China keeps importing soybean, leading to a huge arrival at ports. Consequently, oil plants maintain operation, and soybean crush hits a single-week high of 2.27 mln tonnes. Besides, the peak season of aquaculture will come to an end after October, dragging down 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 eight weeks in a row. Therefore, rapeseed meal market is boosted by tightening supply. And short-term rapeseed meal price is predicted to move with fluctuations. Buyers can wait for low and stable price to make appropriate replenishment.

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 20,600 tonnes, Fuzhou 12,000 tonnes, Shanghai 12,600 tonnes, Tianjin 620 tonnes, Dalian 4,500 tonnes, Fangchenggang 1,000 tonnes and 3,900 tonnes at other ports.

FOB quotes from foreign markets today: Oct/Nov shipments are quoted 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 stay stable today. Due to recovering livestock breeding and stockpiling before Mid-Autumn Festival and National Day holidays, soybean meal stocks in oil plants have fallen. The net crush margin of U.S. soybean futures is already negative following steep declines in oils prices. US soybean posted a technical rebound on Friday. Meal futures on China’s Dalian Commodity Exchange today moderately go up, and spot soybean meal increases by 10-40 CNY/tonne in coastal regions. For the moment, old cottonseed price remains too high, so factories intend to prop up price. However, a little new cottonseed starts going marketing, so feed enterprises are waiting for new cottonseed meal, weighing on its market. It is predicted that short-term cottonseed meal market may fluctuate in a narrow range.

(USD $1=CNY ¥6.83)