Today (Oct 12), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures continued surging last Friday on a bullish USDA monthly report, and meal futures follow to advance on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 10-40 CNY to 3,220-3,300 CNY/tonne today in coastal region, attracting some low-level purchases. (Tianjin 3280, Shandong 3235-3300, Jiangsu 3220-3270, Dongguan 3220-3270, and Guangxi 3260-3280.) The cost of importing soybeans continues rising in China as U.S. soybean futures hit a two-and-a-half-year high. China’s breeding sector is recovering this year, which contributes to higher feed production. In September, feed production was 24.4 mln tonnes in China, a month-on-month increase of 6.2% and a year-on-year increase of 18.1%, according to China Feed Industry Association. Moreover, China’s soybean crush declined to 1.38 mln tonnes last week as millers lowered down operation rates during the National Day holidays, so that soybean meal inventory also dropped. These combine to lift soybean meal prices. However, soybean crush is likely to return to a high level of over 2 mln tonnes this week, while soybean meal is in tepid trade after holidays as aquaculture will gradually go into slack season, and this will thus limit the rise in soybean meal prices. 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. Meal futures in China also continue rising today. And rapeseed meal price in coastal regions settles up 50-80 CNY/tonne at 2,440-2,550 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 increased to 4,000 tonnes last week, they fell by 86% compared to the corresponding period last year. Moreover, soybean crush drastically decreases to 1.38 mln tonnes this week, leading to a decline of soybean meal stocks. Overall, soybean meal market still stays strong. Additionally, livestock breeding is gradually recovering. Feed production in September totaled 24.40 mln tonnes, up 6.2% from August 2020 and up 18.1% from September 2019, according to Feed Association statistics. And global inflation expectations still exist. Therefore, short-term rapeseed meal market keeps strengthening bolstered by many bullish factors.

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. Chinese traders still have sentiment toward propping up prices as domestic port stocks are not under heavy pressure. However, 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. Overall, domestic fishmeal prices are expected to in the near term.

Stocks at ports: Huangpu 35,810 tonnes, Fuzhou 12,580 tonnes, Shanghai 16,620 tonnes, Tianjin 690 tonnes, Dalian 5,160 tonnes, Fangchenggang 1,090 tonnes and 4,010 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 mainly and rise by 50-100 CNY/tonne in some regions today. U.S. soybean futures continued jumping higher on the bullish supply and demand report by USDA. Feed production in September totaled 24.40 mln tonnes, up 6.2% m-o-m and up 18.1% y-o-y, according to Feed Association statistics. And soybean meal accounts more in feed formula. Besides, crushing mills have strong intention to raise price as the operation rate distinctly fell during National Day holidays. Meal futures on Dalian Commodity Exchange follow the rise today, and spot soybean meal price in coastal regions is up 10-40 CNY/tonne. Moreover, manufacturers intend to prop up price due to pricey cottonseed. It is predicted that short-term cottonseed meal price may follow soybean meal price to be trending up.

(USD $1=CNY ¥6.71)