Today (Oct 28), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures fell on Tuesday, as the bullish took profit and rainfalls accelerated soybean planting in Brazil. Spot soybean meal prices steadily go down 10-20 CNY to 3,200-3,300 CNY/tonne today in coastal region, attracting some purchases on low-level basis. (Tianjin 3300, Shandong 3245-3300, Jiangsu 3205-3270, Dongguan 3200-3240, and Guangxi 3320-3260.)

While China’s soybean crush maintains at an extremely high due to adequate soybean supplies, the demand from aquaculture is into the slack season; hence, soybean meal stocks climb 3.5% to 920,000 tonnes. Add to that, some mills in southern China are suspending production under swelling meal inventories, which is also curbing meal prices. But a majority of mills are selling soybean meal at a brisk pace as the demand from the breeding industry is improving, especially in hog feed demand. Several mills in northern China has a line of trucks waiting to get loaded, so they have strong sentiment for higher prices. Hence, soybean meal price is now weak in the south but strong in the north. Overall, short-term soybean meal market will likely keep range-bound to adjust, and buyers can wait for low and stable prices to make appropriate replenishment.

Imported rapeseed meal: U.S. soybean futures closed lower on Tuesday on the profit-taking and improved outlook of Brazilian soybean output. Meal futures in China fall back after low opens today. And rapeseed meal price in coastal regions settles down 10-30 CNY/tonne at 2,430-2,600 CNY/tonne, seeing a light trading. Soybean crush is expected to be over a high level of 2.15 mln tonnes due to ample supply in China. But aquaculture is gradually entering into an off season, which leads soybean meal stocks to start rising. These have depressed rapeseed meal price. Besides, 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 is still tightening, causing a quicker pace in delivery. Except that, many soybean meal contracts remain to be fulfilled under fast selling, boosting meal prices. Hence, short-term rapeseed meal market will likely move with fluctuations.

Imported fishmeal: Imported fishmeal prices steady with a rise today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 10,100-10,300 CNY/tonne, up 100 CNY/tonne from yesterday; Peruvian higher-quality SD with 65% protein content is 10,600-10,800 CNY/tonne, up 100 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 11,200-11,400 CNY/tonne, up 100-200 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,700-11,800 CNY/tonne, up 100 CNY/tonne. Domestic port inventories are not pressuring the market, and Peruvian exporters do not have much fishmeal in stock so that they turn to stall sales and lift prices. Hence, domestic traders also have strong sentiment to prop up 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 52,120 tonnes, Fuzhou 12,200 tonnes, Shanghai 24,200 tonnes, Tianjin 500 tonnes, Dalian 4,200 tonnes, Fangchenggang 1,250 tonnes and 3,960 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 steadily at 1,370 USD/tonne, and super with 68% protein content at 1,600 USD/tonne.

Cottonseed meal: Cottonseed meal prices stay stable and individually decrease by 50 CNY/tonne today. U.S. soybean futures finished lower on Tuesday on profit-taking and accelerating soybean sowing under rainfall in Brazil. Meal futures edge down on China’s Dalian Commodity Exchange today, and spot soybean meal steadily declines by 10-20 CNY/tonne. Soybean crush maintains a super high level, while aquaculture is gradually entering into an off season, so soybean meal stocks stop falling and start rising. This has curbed meal price. Moreover, cottonseed price falls from high levels. And the operation rate in crushing mills will pick up, so the supply of cottonseed meal is likely to increase. Plus, cottonseed meal trading is light. These factors are all bearish for cottonseed meal market. Besides, U.S. soybean keeps strengthening, lifting the cost of importing soybean. However, cottonseed meal price is still underpinned by relatively high cost. Therefore, it is predicted that cottonseed meal market will not drop too much and still fluctuate at a high level on the whole.

(USD $1=CNY ¥6.72)