Today (Oct 22), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures continued rising on brisk exports and slow planting progress in Brazil. Meal futures are bumpy and climbing on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up by 10-20 CNY to 3,230-3,320 CNY/tonne today in coastal region, attracting some purchases on low-level basis. (Tianjin 3320, Shandong 3280-3310, Jiangsu 3240-3320, Dongguan 3230-3300, and Guangxi 3270-3300.)

Strong U.S. soybean futures are lifting soybean import cost. China’s production of hog feed rose 30% year over year in September, as there has been a recovery in pig farming sector. And soybean meal itself also makes up a big proportion in feed formula owing to its higher value-to-price ratio. Hence, domestic crushers are selling meal at a quick pace. In the week as of Oct 16^th, China’s soybean meal stocks fell 5% weekly to 880,000 tonnes in coastal areas. Oil mills have strong sentiment for higher prices, which is support meal market. However, China’s soybean crush remains at a high level due to adequate soybean stocks, and domestic farmers usually scale down aquaculture from October, which are curbing rises in meal prices. Overall, short-term soybean meal prices will probably fluctuate and keep strengthening on bullish factors. Buyers are suggested to make appropriate replenishment upon negative basis.

Imported rapeseed meal: U.S. soybean futures finished higher on Wednesday on expected strong export demand and market’s fears about dry weather in South America. Rapeseed meal futures on China’s Zhengzhou Commodity Exchange fluctuate slightly today. And rapeseed meal price in coastal regions settles at 2,460-2,590 CNY/tonne with a fluctuation of 10 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 this case, the supply of rapeseed meal in coastal regions gets tightened. And soybean meal inventory has fallen for three weeks in a row due to fast selling. For these reasons, rapeseed meal market is bolstered. Besides, China is persistently purchasing U.S. soybean, leading to a huge arrival at ports. Based on this, soybean crush may pick up to an extremely high level of over 2.10 mln tonnes this week amid huge imports. Furthermore, aquaculture is gradually entering into an off season, which may limit price rises of rapeseed meal. In the near term, rapeseed meal market mainly fluctuates at high levels.

Imported fishmeal: Imported fishmeal prices steady today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 10,000-10,200 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,500-10,700 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 11,000-11,200 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,600-11,700 CNY/tonne. Domestic port inventories are not pressuring the market, and foreign market will hopefully keep firm and rising; hence, domestic traders have strong sentiment for propping up fishmeal prices. This 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 manufacturers tend to wait on the sidelines. Overall, domestic fishmeal prices are expected to steady with a slight rise in the near term.

Stocks at ports: Huangpu 50,200 tonnes, Fuzhou 12,070 tonnes, Shanghai 19,530 tonnes, Tianjin 500 tonnes, Dalian 4,280 tonnes, Fangchenggang 1,080 tonnes and 3,930 tonnes at other ports.

FOB quotes from foreign markets today: Nov/Dec shipments are quoted higher 30 USD at 1,380 USD/tonne for Peruvian Standard with 65% protein content and at 1,610 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 further increase by 50-100 CNY/tonne in several regions today. U.S. soybean futures rose on Wednesday on strong export demand and slow planting progress in Brazil. Meal futures on China’s Dalian Commodity Exchange swing to edge up today, and spot soybean meal price in coastal regions grows by 10-20 CNY/tonne. U.S. soybean performs well, pushing up the cost of importing soybean. Besides, the production of pig feed in September has risen by 30% from a year earlier as livestock breeding is recovering gradually. Plus, soybean meal accounts more in feed formula due to its higher cost performance compared to mixed meal. Moreover, soybean meal stocks in coastal regions have fallen by 5% to 880,000 tonnes this week, so crushing mills have strong intention to raise price. Additionally, manufacturers intend to prop up cottonseed meal price due to pricey cottonseed. Therefore, it is predicted that short-term cottonseed meal market may follow soybean meal to fluctuate to go up.

(USD $1=CNY ¥6.66)