Today (Sep 30), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures fell on Tuesday on harvest pressure, as the USDA in its latest report said that soybean harvest was 20% complete, 5 points ahead of average; and 64% was rated in good to excellent condition, 1 percentage point above the previous week. Spot soybean meal prices steadily fluctuate by 10-20 CNY to 3,030-3,120 CNY/tonne in coastal regions in tepid trade. (Tianjin 3120, Shandong 3045-3090, Jiangsu 3040-3055, Dongguan 3030-3040, and Guangxi 3050-3060.) Festival buying is coming to an end in China, and the market is concerned about the second wave of COVID-19 cases in the Europe, which are curbing meal prices. But China’s livestock and poultry industry embraces a big recovery, and soybean meal has a higher proportion in feed formula. In addition, some domestic oil mills also have a plan for downtime during the National Day holidays. Soybean crush will go sharply low this week and next week, and some mills have also signed many forward contracts for soybean meal, which will limit the decline in meal prices. In the short term, soybean meal market will follow futures to fluctuate and adjust. But due to an inflation expectation, soybean meal prices may hopefully rise mildly after the market effectively digests the pressure from U.S. soybean sales. Participants are suggested to remain cautious.

Imported rapeseed meal: U.S. soybean futures closed lower on Tuesday on increasing pressure from seasonal harvest. Rapeseed meal futures on China’s Zhengzhou Commodity Exchange decline today but move around the previous closing. And rapeseed meal price in coastal regions steadily settles at 2,280-2,370 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 eight weeks in a row. Therefore, rapeseed meal market is boosted by tightening supply. However, U.S. soybean is still under pressure from going marketing, and soybean crush in China records new high. Furthermore, the peak season of aquaculture will come to an end after October, which is bearish for rapeseed meal. Accordingly, rapeseed meal market will mainly fluctuate in the near term.

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. And traders are storing fishmeal as supplies are small in domestic market, 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 24,000 tonnes, Fuzhou 12,100 tonnes, Shanghai 14,000 tonnes, Tianjin 600 tonnes, Dalian 4,600 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports.

FOB quotes from foreign markets today: Oct/Nov shipments are quoted at 1,270 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. Soybean crushing mills keep operating amid strong shipments to China, thereby soybean crush records new high and soybean meal inventory starts rallying. Besides, the stockpiling before holidays is nearly ended, and a second wave of COVID-19 in Europe has triggered people’s concerns. Hence, soybean meal price is dragged down. Additionally, with the marketing of new cottonseed, feed enterprises are waiting for new cottonseed meal, which bears cottonseed meal market. For the moment, old cottonseed price remains too high and livestock breeding is obviously recovering, so 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)