Today (Oct 13), the market for meals in China is shown as follows:

Soybean meal: The market was expecting significant progress in soybean harvests in USDA weekly report on Tuesday, and the USDA did not have any soybean export sales report for a second consecutive day on Monday, in addition to rains recorded in soybean producing regions in Brazil. Hence, U.S. soybean futures tumbled on Monday.

Meal futures also open low and drop on China’s Dalian Commodity Exchange today. Spot soybean meal prices go down 10-40 CNY to 3,190-3,270 CNY/tonne today in coastal region, and in thin trade. (Tianjin 3250, Shandong 3200-3270, Jiangsu 3220-3270, Dongguan 3190-3250, and Guangxi 3220-3240.)

China’s soybean stocks have risen 46% against a year earlier, and soybean crush is forecast to return to a high level of 2.04 mln tonnes this week. Meanwhile, domestic farmers usually scale down aquaculture from every October, which will also add to fluctuations in meal prices.

Nevertheless, domestic feed production has seen a huge rise with the recovery in breeding sector, and oil mills are selling soybean meal at a brisk pace, which together prop up prices.

Domestic soybean meal prices will maintain an uptrend with fluctuations overall, albeit short-term declines, and buyers can wait for low and stable prices to make appropriate replenishment.

Imported rapeseed meal: U.S. soybean closed sharply lower on Monday on the rainfall in Brazil crop area and a lack of export. Rapeseed meal futures in China’s Zhengzhou Commodity Exchange fractionally swing today. And rapeseed meal price in coastal regions settles at 2,410-2,520 CNY/tonne with a fluctuation of 20-30 CNY/tonne, seeing a light trading. Soybean inventory jumps by 46 higher than the same period last year, and soybean crush is likely to rise to an extremely high level of 2.04 mln tonnes this week. But aquaculture is gradually entering into an off season. Therefore, rapeseed meal price is dragged down by these factors. On the other side, rapeseed crush still stays at low levels due to limited rapeseed imports amid tensions between Ottawa and Beijing. In this case, rapeseed meal supply in coastal regions is still tightening, and some oil mills limit the delivery. This may boost rapeseed meal price to maintain a strong trend. Nevertheless, rapeseed meal futures post a fluctuation in short-term market, impacting the trading volume.

Imported fishmeal: Imported fishmeal prices are slightly higher today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 9,900-10,000 CNY/tonne, up 100-200 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,400-10,500 CNY/tonne, up 100-200 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 10,900-11,000 CNY/tonne, up 100-200 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,400-11,500 CNY/tonne, up 100-200 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 37,510 tonnes, Fuzhou 12,550 tonnes, Shanghai 16,500 tonnes, Tianjin 660 tonnes, Dalian 5,050 tonnes, Fangchenggang 1,050 tonnes and 4,050 tonnes at other ports.

FOB quotes from foreign markets today: Oct/Nov shipments are quoted higher by 30 USD at 1,300 USD/tonne for Peruvian Standard with 65% protein content and at 1,530 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 partly stay stable and partly further rise by 50 CNY/tonne today. Feed production in September totaled 24.40 mln tonnes, up 6.2% m-o-m and up 18.1% y-o-y, for livestock breeding is recovering gradually. And soybean meal accounts more in feed formula. Besides, crushing mills have strong intention to raise price as the sales progress in soybean meal is fast, which supports cottonseed meal price. And manufacturers intend to prop up price due to pricey cottonseed. U.S. soybean futures slumped on Monday. Meal futures on Dalian Commodity Exchange today fall back after low opens, and spot soybean meal price in coastal regions is down 10-40 CNY/tonne. Additionally, new cottonseed has gone marketing, leading to a fluctuation in cottonseed meal market. It is predicted that short-term cottonseed meal price may fluctuate to go up.

(USD $1=CNY ¥6.73)