Today (Oct 10), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures continued surging on Friday on a bullish USDA supply and demand report, and China’s commodity exchanges are closed on Saturday today. Spot soybean meal prices go up 10-30 CNY to 3210-3300 CNY/tonne today in coastal region, attracting some low-level purchases. (Tianjin 3270, Shandong 3220-3280, Jiangsu 3225-3300, Dongguan 3210-3260, and Guangxi 3260-3280.) Brisk export demand is offering strong support to nearby contracts, coupled with much lower-than-forecast stocks in the USDA report, so U.S. soybean futures are bolstered to advance to a two-and-a-half-year high, thus leading to a rise in soybean import cost in China. China’s breeding sector is in a recovery and soybean meal takes a bigger share in feed formula, and soybean crush has fallen sharply during the National Day holidays, which together support meal prices. But China’s soybean arrivals at ports are substantial as the country continues buying U.S. soybeans, while aquaculture will gradually fade after October. In addition, mid-to-downstream buyers are cautious about current meal price, which will also affect its rises. Overall, short-term soybean meal prices will keep a strong trend owing to bullish factors.

Imported rapeseed meal: U.S. soybean closed sharply higher on Friday on the bullish USDA supply and demand report. China’s commodity exchanges are closed on the weekend. And rapeseed meal price in coastal regions settles at 2,360-2,500 CNY/tonne with partial rise of 20-30 CNY/tonne, seeing a light trading. Rapeseed crush still stays at low levels due to limited rapeseed imports amid tensions between Ottawa and Beijing. Although rapeseed meal stocks in coastal areas increase to 4,000 tonnes this week, they fall by 86% compared to the corresponding period last year. Moreover, soybean crush drastically decreases to 1.38 mln tonnes this week, versus 2 mln tonnes before National Day holidays. Overall, soybean meal market still fluctuates to keep strengthening, which supports short-term rapeseed meal market to stay strong. Nevertheless, soybean crush will likely rise to a high level after holidays as soybean arrival at ports is still huge in quantity. Furthermore, aquaculture will gradually enter into a slack season after October, which limits rapeseed meal trading.

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. Aquaculture is entering into the off-season in China as the weather gets cool, so its feed demand for fishmeal is lessening and feed companies are not busy purchasing. Domestic fishmeal market has strong wait-and-see sentiment now. However, domestic traders are seeking to prop up prices as fishmeal stockpiles are not pressuring the market very much at present. Overall, domestic fishmeal prices may steadily edge up in the near term.

Stocks at ports: Huangpu 34,000 tonnes, Fuzhou 12,600 tonnes, Shanghai 16,000 tonnes, Tianjin 600 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 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 with a rise of 50 CNY/tonne in several regions today. U.S. soybean futures continued jumping higher on the bullish supply and demand report by USDA, lifting the cost of importing soybean. In this case, crushing mills have strong intention to raise price as the operation rate distinctly fell during National Day holidays. These have together bolstered meals prices. And spot soybean meal price in coastal regions is up 10-30 CNY/tonne. Besides, manufacturers intend to raise price due to pricey cottonseed and obvious recovery of livestock breeding. But buyers remain relatively cautious as new cottonseed entered market while the demand was poor. It is predicted that short-term cottonseed meal price may follow soybean meal price to fluctuate to trend up.

(USD $1=CNY ¥6.78)