Today (Oct 26), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures sharply rose last Friday, and meal futures moderately advance on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 10-30 CNY to 3,210-3,310 CNY/tonne today in coastal region, attracting some purchases on low-level basis. (Tianjin 3300, Shandong 3280-3290, Jiangsu 3240-3300, Dongguan 3210-3240, and Guangxi 3260-3300.)

Import cost of soybeans is rising alongside with strong performance in U.S. soybean prices. Meantime, domestic crushers are selling soybean meal at a brisk pace as the demand from breeding sectors is improving. In some mills, there has already been a delay in truck loading since millers are limiting the delivery. Millers have strong sentiment for higher prices, bolstering meal market. But domestic soybean crush remains at a very high level, while aquaculture is fading, which is curbing rises in meal prices. Overall, short-term soybean meal prices will fluctuate and keep strengthening on bullish factors, and participants can keep an eye on weather in South America and sales in the U.S..

Imported rapeseed meal: U.S. soybean futures finished higher on Friday on favorable export outlook and concerns over weather condition in US and other regions around the world. Meal futures in China moderately increase today. And rapeseed meal price in coastal regions settles up 10 CNY/tonne at 2,460-2,590 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 gets tightened. Rapeseed meal inventory has declined by 40% to 3,000 tonnes, so oil mills limit the delivery. Except that, soybean meal prices fluctuate to go up due to fast selling. These have together boosted rapeseed meal market to stay strong in the near term. Additionally, Soybean crush may pick up by 5.2% to 2.19 mln tonnes this week amid huge imports. Furthermore, aquaculture is gradually entering into an off season, which may dampen buyers’ enthusiasm in chasing up prices.

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 Peruvian exporters have presold 190,000 tonnes of fishmeal so that they turn to stall sales and lift prices. Hence, domestic traders also have strong sentiment for higher prices, which is leading support to the 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 have weakening enthusiasm. These are constraining rises in the domestic market. Overall, domestic fishmeal prices are expected to steady with a slight adjustment in the near term.

Stocks at ports: Huangpu 50,750 tonnes, Fuzhou 12,450 tonnes, Shanghai 20,650 tonnes, Tianjin 550 tonnes, Dalian 4,700 tonnes, Fangchenggang 1,200 tonnes and 4,100 tonnes at other ports.

FOB quotes from foreign markets today: Nov/Dec shipments are quoted steadily 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 higher by 50 USD at 1,360 USD/tonne, and super with 68% protein content at 1,590 USD/tonne.

Cottonseed meal: Cottonseed meal prices stay stable today. U.S. soybean keeps strengthening, lifting the cost of importing soybean. And US soybean surged on Friday. Meal futures go up moderately on China’s Dalian Commodity Exchange today, and spot soybean meal is up 10-30 CNY/tonne in coastal regions. Besides, the production of pig feed in September has risen by 30% from a year earlier as livestock breeding is recovering gradually. Furthermore, some soybean crushing mills limit the delivered volume due to fast selling and have strong intention to raise price, which supports meals prices. Additionally, manufacturers also intend to prop up cottonseed meal price due to pricey cottonseed. Therefore, it is predicted that short-term cottonseed meal market may fluctuate to go up following soybean meal.

(USD $1=CNY ¥6.67)