Today (Oct 29), the market for meals in China is shown as follows:

Soybean meal: The Dow Jones and the S&P 500 just experienced their largest losses in more than fourth months, as concerns over the second wave of the COVID-19 pandemic in the United States and some European countries, among which France and Germany both announced strict lockdown measures. Moreover, Brazilian soybean production prospect was bolstered by favorable rainfalls recently. Hence, U.S. soybean futures closed further lower on Wednesday. And meal futures open low and decline on China’s Dalian Commodity Exchange today. Spot soybean meal prices steadily go down 20-40 CNY to 3,160-3,270 CNY/tonne today in coastal region, attracting some purchases on low-level basis. (Tianjin 3270, Shandong 3200-3280, Jiangsu 3185-3230, Dongguan 3160-3210, and Guangxi 3230-3260.)

China’s soybean crush maintains at an extremely high due to adequate soybean supplies, but the demand from aquaculture is into the slack season, so its soybean meal stocks climbed 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. Soybean meal prices are expected to have limited downside space, albeit short-term declines. Buyers can wait for low and stable prices to make appropriate replenishment on the dips.

Imported rapeseed meal: U.S. soybean futures sharply fell on Wednesday on a surge in the novel coronavirus cases. Meal futures in China fall back after low opens today. And rapeseed meal price in coastal regions settles down 30-100 CNY/tonne at 2,400-2,500 CNY/tonne, seeing a light trading. Soybean crush maintains a super high level due to ample supply in China. But aquaculture is gradually entering into an off season, which leads soybean meal stocks to start rising. Total stocks of soybean meal amount to 920,000 tonnes, up by 3.5%. 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 oil mills tend to raise price under fast selling of soybean meal, limiting its price declines. Hence, short-term rapeseed meal market will likely track futures to fluctuate.

Imported fishmeal: Imported fishmeal prices steady today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 10,100-10,300 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,600-10,800 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 11,200-11,400 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,700-11,800 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 52,680 tonnes, Fuzhou 12,650 tonnes, Shanghai 24,750 tonnes, Tianjin 540 tonnes, Dalian 4,900 tonnes, Fangchenggang 1,180 tonnes and 4,150 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 today. U.S. soybean futures finished sharply lower on Wednesday on peaked COVID-19 new cases in U.S. and some major European countries and favorable rain in Brazil soybean area. Meal futures fall back with low opens on China’s Dalian Commodity Exchange today, and spot soybean meal declines by 20-40 CNY/tonne in coastal regions. 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 ¥6.73)