Today (Oct 14), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures rose in overnight trade on the export sales report and as U.S. soybean crops were rated 63% in good to excellent state versus the 64% in previous week and of the market forecast, in addition to slow progress in soybean planting in South America.

Meal futures swing to decline for a lack of follow-up buying on China’s Dalian Commodity Exchange today. Spot soybean meal prices go down 10-30 CNY to 3,170-3,250 CNY/tonne today in coastal region, and in thin trade. (Tianjin 3250, Shandong 3200-3270, Jiangsu 3200-3270, Dongguan 3170-3230, and Guangxi 3230-3250.)

China’s soybean stocks have risen 46% year on year, 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 reduce its feed demand. These are capping rises in meal prices.

Nevertheless, domestic feed production keeps rising with a strong recovery in breeding sector, and oil mills are selling soybean meal at a brisk pace and have a lot of outstanding contracts. 

On the whole, domestic soybean meal prices will maintain an uptrend with fluctuations on bullish factors, 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 higher on Tuesday. Meal futures in China move lower after opening gains today. And rapeseed meal price in coastal regions settles down 10 CNY/tonne at 2,410-2,500 CNY/tonne, seeing a light trading. China keeps purchasing soybeans, leading to huge arrivals at ports. In this case, soybean crush is likely to rise again over the next two weeks. 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 consequence, rapeseed meal supply in coastal regions is still tightening, and some oil mills limit the delivery. This may boost meal price to maintain a strong trend. In a hybrid of the bull and the bear, short-term rapeseed meal price will probably move sideways with fluctuations.

Imported fishmeal: Imported fishmeal prices steady with a partial rise today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 10,000 CNY/tonne, up 100-200 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,400-10,5600 CNY/tonne, up 100 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 10,900-11,000 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,500 CNY/tonne, up 100 CNY/tonne. Some 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 steadily adjust in the near term.

Stocks at ports: Huangpu 39,040 tonnes, Fuzhou 12,610 tonnes, Shanghai 17,030 tonnes, Tianjin 630 tonnes, Dalian 4,950 tonnes, Fangchenggang 1,030 tonnes and 4,040 tonnes at other ports.

FOB quotes from foreign markets today: Oct/Nov shipments are quoted steadily 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 stay stable but further rise by 20 CNY/tonne in several regions today. U.S. soybean export performs well, result from its goo-to-excellent rate of 63% and slow progress in sowing soybeans in South America. Feed production is increasing as livestock breeding is recovering gradually. And soybean meal accounts more in feed formula. Therefore, crushing mills have strong intention to raise price, which supports cottonseed meal price. Besides, manufacturers intend to prop up price due to pricey cottonseed. Meal futures on Dalian Commodity Exchange today fluctuate to go down, and spot soybean meal price in coastal regions declines by 10-30 CNY/tonne. Additionally, new cottonseed has gone marketing, increasing the instability in cottonseed meal market. It is predicted that short-term cottonseed meal price may follow soybean meal to move with fluctuations.

(USD $1=CNY ¥6.75)