Today (Nov 2), the market for meals in China is shown as follows:

Soybean meal: US soybean futures rose last Friday as strong export demand tightened supplies, and meal futures fluctuate to edge lower on China’s Dalian Commodity Exchange today. Spot soybean meal prices steadily fluctuate by 10-30 CNY to 3,140-3,270 CNY/tonne today in coastal region, attracting some purchases on low-level basis. (Tianjin 3270, Shandong 3235-3270, Jiangsu 3185-3220, Dongguan 3140-3190, and Guangxi 3210-3240.)

U.S. soybean market is under pressure from harvests, and China’s soybean crush remains high amid adequate supplies. Meantime, aquaculture has slack demand for feed entering winter, and some southern mills have suspended for swelling inventories and quickened deliveries. However, 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, so that most mills are selling soybean meal at a brisk pace. Meanwhile, China is ramping up soybean meal exports from Guangdong Province to Japan, and also to other Southeast Asia countries like Vietnam. As results of U.S. presidential election will come out this Thursday, traders are cautious now on huge uncertainty. Overall, short-term soybean meal market will likely keep range-bound, and buyers can buy on immediate demand.

Imported rapeseed meal: U.S. soybean futures finished higher on Friday on tightened supply under strong export demand. Rapeseed meal futures fluctuate to edge up on China’s Zhengzhou Commodity Exchange today. And rapeseed meal price in coastal regions settles at 2,400-2,480 CNY/tonne with a fluctuation of 20-40 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. Rapeseed meal inventory has dropped to 1,000 tonnes, a decrease of 66% from the previous week. Hence, oil mills limit the orders and truck loading is delayed. Except that, oil mills are in fast progress in soybean meal sales. These have together boosted rapeseed meal market to keep strengthening in a short term.  But aquaculture is gradually entering into an off season, which may affect buyer’s enthusiasm in chasing price. Additionally, global crude oil plummeted on European countries lockdowns amid resurgence of COVID-19. And as the result of U.S. presidential election will come out this Thursday, triggering marketers’ risk aversion, which leads commodities to pare gains. And short-term rapeseed meal market will also move with fluctuations. Buyers can take a wait-and-see attitude.

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 tend to stall sales and lift prices (waiting for new-season fishing quotas). 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 54,750 tonnes, Fuzhou 12,250 tonnes, Shanghai 26,600 tonnes, Tianjin 520 tonnes, Dalian 5,100 tonnes, Fangchenggang 1,100 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 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 fluctuate by 20-50 CNY/tonne in some regions today. U.S. soybeans are under pressure from seasonal marketing. Soybean crush maintains a super high level amid huge imports, 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 causes meal price to fall back. Moreover, cottonseed price falls from high levels. And the operating 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 fluctuate in a short term but stay at a high level on the whole.

(USD $1=CNY ¥6.71)