Today (Oct 16), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures extended an uptrend on Thursday on brisk export sales and as the NOPA report showed higher-than-forecast soybean crush in the U.S.. Meal futures open high and continue gains on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 10-30 CNY to 3,200-3,280 CNY/tonne today in coastal region, attracting some low-level purchases. (Tianjin 3280, Shandong 3220-3260, Jiangsu 3210-3280, Dongguan 3200-3250, and Guangxi 3250-3270.)

Continuous rises in U.S. soybean prices are lifting the import cost, so Dalian net margins for soybeans post losses. Moreover, China’s demand for soybean meal has been improving due to a recovery in the livestock and poultry breeding industry, particularly in the pig sector. And soybean meal itself also makes up a big proportion in feed formula, so domestic mills are able to take a brisk sales pace and have almost presold spot stocks. While adequate soybean supply is prompting soybean crush to a very high level in China, domestic farmers usually scale down aquaculture from 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 Thursday. But rapeseed meal futures on China’s Zhengzhou Commodity Exchange go up with fluctuations today. And rapeseed meal price in coastal regions settles up 10-20 CNY/tonne at 2,390-2,530 CNY/tonne, seeing a light trading. 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. The trading volume of February-May contract M01-50 in Guangdong oil plants increased by 80,000 tonnes yesterday. And many contracts of soybean meal remain to be fulfilled due to fast selling, so the overall soybean market still stays strong. In this case, rapeseed meal market is bolstered by these factors and will keep strengthening in a short term. Nevertheless, soybean crush is likely to rise to a super high level of 2.04 mln tonnes this week amid an ample supply. Moreover, aquaculture is gradually entering into an off season, weighing on rapeseed meal price. Therefore, buyers’ enthusiasm in chasing up price may be affected.

Imported fishmeal: Imported fishmeal prices jump today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 10,000-10,200 CNY/tonne, up 100-200 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,500-10,700 CNY/tonne, up 100-200 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 11,000-11,300 CNY/tonne, up 100-300 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,600-11,700 CNY/tonne, up 100-200 CNY/tonne. Domestic port inventories are not pressuring the market and Peruvian manufacturers have also raised quotations due to limited spot stocks, so a majority of domestic traders have hiked their prices today, which is supporting domestic fishmeal market. 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 44,500 tonnes, Fuzhou 12,000 tonnes, Shanghai 17,700 tonnes, Tianjin 550 tonnes, Dalian 4,600 tonnes, Fangchenggang 1,020 tonnes and 3,810 tonnes at other ports.

FOB quotes from foreign markets today: Oct/Nov shipments are quoted higher by 30 USD at 1,330 USD/tonne for Peruvian Standard with 65% protein content and at 1,560 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 continued increasing on Thursday on China’s brisk demand, lifting the cost of importing soybean. Meal futures on China’s Dalian Commodity Exchange today expand the opening gains, and spot soybean meal price in coastal regions up by 10-30 CNY/tonne. Besides, the demand for pig feed has increased markedly as livestock breeding is recovering gradually, and soybean meal accounts more in feed formula. In this case, the selling of soybean meal has been in fast progress, which boosts 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 keep an upward trend with fluctuations.

(USD $1=CNY ¥6.73)