Today (Oct 9), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures fell 1 cent from the previous close to 1,050 cents on Thursday, which was a big rise of 61 cents from 989 cents September 30. Meal futures post a wide rise on China’s Dalian Commodity Exchange today. Spot soybean meal prices climb by 150-200 CNY from September 30 to 3,200-3,270 CNY/tonne today in coastal region, attracting some low-level purchases. (Tianjin 3270, Shandong 3210-3240, Jiangsu 3220-3270, Dongguan 3200-3230, and Guangxi 3220-3250.) The sharp rise in U.S. soybean futures is bolstered by the bullish seasonal U.S. soybean stocks in the USDA report and a further delay in Brazilian soybean planting due to a lack of rainfall, and this thus leads to a lift to the import cost. In addition, Chinese crushers are willing to raise prices after a big decline in soybean crush during the National Day holidays, so soybean meal prices follow futures to climb higher today and will maintain a strong trend in the near term. But U.S. soybean selling is still pressuring the market and Chinese crushers will likely hike soybean crush after the holidays. And the USDA supply and demand report due on Friday will provide new cues to the market, as participants forecast the USDA will lower down the predictions for U.S. soybean output.

Imported rapeseed meal: Due to the bullish seasonal U.S. soybean stocks in the USDA report and a further delay in Brazilian soybean planting due to a lack of rainfall, U.S. soybean futures fell 1 cent from the previous close to 1,050 cents on Thursday, which was a big rise of 61 cents from 989 cents September 30. Meal futures post a wide rise on China’s Dalian Commodity Exchange today. And rapeseed meal price in coastal regions steadily settles up 50-90 CNY/tonne at 2,340-2,480 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 nine 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, buyers and sellers have strong sentiment of waiting after the Golden Week, so that the trade is scarce at ports today. However, stockpiles are not pressuring the market very much in China at present, and Peru has postponed the ending date of new-season investigation, which will also delay the export of fresh meal. Overall, domestic fishmeal prices may steadily edge up in the near term.

Stocks at ports: Huangpu 30,000 tonnes, Fuzhou 12,100 tonnes, Shanghai 16,000 tonnes, Tianjin 600 tonnes, Dalian 5,000 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. As a result of increasing marketing volume of new cottonseed, the prices in Xinjiang and Jiangxi decline by 50 CNY/tonne compared to National Day holidays ago. A delay in soybean sowing caused by a lack of precipitation in Brazil, along with bullish quarterly inventory report by USDA, led U.S. soybean to surge by 61 cents during National Day holidays. Consequently, the cost of importing soybean is climbing. Meal futures on China’s Dalian Commodity Exchange broadly increase today, and spot soybean meal price in coastal regions is up 150-200 CNY/tonne. Besides, manufacturers intend to raise price due to pricey cottonseed and gradual recovery in livestock breeding. Cottonseed meal price slightly declined during National Day holidays as new cottonseed entered market while the demand was poor. However, soybean meal market in China basically rises sharply after holidays following the rise in US soybean, which boosts cottonseed meal price in some regions. It is predicted that short-term cottonseed meal price may follow soybean meal price to fluctuate to bounce back.

(USD $1=CNY ¥6.78)