Today (Oct 15), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures continued rising on Wednesday on export sales to China and as a lack of rainfall was threatening soybean planting in Brazil’s farming regions.

Meal futures moderately advance on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 10-20 CNY to 3,180-3,260 CNY/tonne today in coastal region, attracting some low-level purchases. (Tianjin 3260, Shandong 3220-3260, Jiangsu 3180-3260, Dongguan 3180-3210, and Guangxi 3230-3250.)

China’s September feed production saw a year-on-year rise of 18% owing to a progressive recovery in the breeding sector. As soybean meal makes up a big proportion in feed formula, domestic mills are able to take a brisk sales pace and have almost presold spot stocks. In addition, funds are buying dips for long positions due to an inflation expectation. Millers have strong sentiment for higher prices, which is supporting meal market.While adequate soybean supply is prompting soybean crush to a very high level, domestic farmers usually scale down aquaculture from every October. Besides, sales of new U.S. soybeans will also be pressuring the market. Overall, short-term soybean meal prices are predicted to fluctuate with a strengthening trend.

Imported rapeseed meal: U.S. soybean ended higher on Wednesday. But rapeseed meal futures on China’s Zhengzhou Commodity Exchange swing to lower today. And rapeseed meal price in coastal regions settles at 2,410-2,510 CNY/tonne with a fluctuation of 10 CNY/tonne, seeing a light trading. China keeps purchasing soybeans, leading to an ample supply. In this case, soybean crush is likely to rise to a super high level of 2.04 mln tonnes. But aquaculture is gradually entering into an off season, weighing on rapeseed meal price. 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 many contracts of soybean meal remain to be fulfilled due to fast selling. This has boosted meals price. It is expected that short-term rapeseed meal price will probably move sideways with fluctuations.

Imported fishmeal: Imported fishmeal prices steady today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 10,000 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,400-10,5600 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. Some Chinese traders still have sentiment toward lifting 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 tend to wait on the sidelines. Overall, domestic fishmeal prices are expected to steadily adjust in the near term.

Stocks at ports: Huangpu 41,530 tonnes, Fuzhou 12,520 tonnes, Shanghai 17,520 tonnes, Tianjin 600 tonnes, Dalian 4,950 tonnes, Fangchenggang 1,010 tonnes and 4,010 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 30-50 CNY/tonne in several regions today. U.S. soybean continued increasing on Wednesday as Chinese importers made purchases and the rainfall in Brazil crop area was not much enough to threaten the soybean sowing. Meal futures on China’s Dalian Commodity Exchange today moderately go up, and spot soybean meal price in coastal regions up by 10-20 CNY/tonne. Besides, feed production in September has risen by 18% from a year earlier as livestock breeding is recovering gradually. In addition, funds are still flowing into market on the dips amid existing inflation expectations. In this case, crushing mills have strong intention to raise price, which supports cottonseed meal price. Moreover, manufacturers intend to prop up price due to pricey cottonseed. It is predicted that short-term cottonseed meal price may follow soybean meal to fluctuate to go up.

(USD $1=CNY ¥6.74)