Today (Oct 30), the market for meals in China is shown as follows:

Soybean meal: US soybean futures continued declining on Thursday as commodity funds began to take profits on severe COVID-19 pandemic in Europe and on risk aversion ahead of the US election on Nov 3, in addition to dismal soybeans export sales and improving weather in Brazil’s producing regions. But meal futures fluctuate to rebound slightly on China’s Dalian Commodity Exchange today. Spot soybean meal prices steadily fluctuate by 10-30 CNY to 3,160-3,280 CNY/tonne today in coastal region, attracting some purchases on low-level basis. (Tianjin 3270, Shandong 3215-3280, Jiangsu 3170-3220, Dongguan 3160-3190, and Guangxi 3230-3240.)

Soybean crush margins are obviously unprofitable on Dalian at present. And 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. Hence, oil mills are keen on lifting prices, which is supporting meal market. China’s soybean crush maintains at an extremely high due to adequate soybean supplies, but the demand from aquaculture is into the slack season. Add to that, some mills in southern China are suspending production under swelling meal inventories and are quickening up deliveries, which is also curbing meal prices. Overall, soybean meal prices will have limited downside space in spite of some adjustments, and will keep strengthening with some fluctuations. Buyers are suggested to make appropriate replenishment on the dips and remain cautious in chasing higher prices. There remains huge uncertainty in the market as the result from US presidential election will come out next week.

Imported rapeseed meal: U.S. soybean futures finished lower on Thursday on the second wave of COVID-19 pandemic and favorable weather in Brazil soybean area. Rapeseed meal futures on China’s Zhengzhou Commodity Exchange fluctuate today. And rapeseed meal price in coastal regions settles at 2,400-2,500 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 is still tightening, causing a quicker pace in delivery. Except that, oil mills are in fast progress in soybean meal sales. These have boosted rapeseed meal market to keep strengthening in a short term.  Besides, soybean crush is expected to be over a extremely high level of 2.15 mln tonnes due to ample supply in China. But aquaculture is gradually entering into an off season, which may affect buyer’s enthusiasm in chasing price. Additionally, the Nov.3 U.S. presidential election remains the major focus for investors, so market participants had better be cautious.

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 53,180 tonnes, Fuzhou 12,980 tonnes, Shanghai 25250 tonnes, Tianjin 560 tonnes, Dalian 5150 tonnes, Fangchenggang 1,200 tonnes and 4,200 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 20 CNY/tonne today. The second wave of COVID-19 outbreak, poor export sales data coupled with improved weather in Brazil soybean area caused U.S. soybean futures to continue falling on Thursday. Soybean crush maintains a super high level, while aquaculture is gradually entering into an off season. In this case, some Southern oil mills have halted the production due to bloat inventory and urge the delivery, which 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)