Today (Nov 3), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures eased on Monday, and meal futures fractionally swing on China’s Dalian Commodity Exchange today. Spot soybean meal prices steadily fluctuate by 10-20 CNY to 3,150-3,270 CNY/tonne today in coastal region, attracting some purchases on low-level basis. (Tianjin 3250, Shandong 3230-3270, Jiangsu 3185-3200, Dongguan 3150-3190, and Guangxi 3210-3240.)

China’s soybean crush stays at a high point amid bumper stock supplies, while aquaculture demand for soybean meal turns thin, which curbs meal prices. However, the majority of mills are selling meal at a brisk pace thanks to improving demand from poultry and livestock breeding. Domestic soybean meal stocks thus keep reducing even under high soybean crush, leading to a line of trucks waiting to get loaded at some mills in north China. Millers have strong sentiment to prop up prices, which is supporting meal market. In a hybrid of the bull and the bear, short-term soybean meal prices will probably keep range-bound, with the market waiting for the results of the U.S. presidential elections coming out tomorrow. Buyers can buy according to immediate requirements.

Imported rapeseed meal: U.S. soybean futures finished lower on Monday on favorable weather for harvest progress and long liquidation ahead of the U.S. presidential election. Meal futures in China fluctuate slightly today. And rapeseed meal price in coastal regions settles partly up 20 CNY/tonne at 2,420-2,480 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. And rapeseed meal pellets inventory has declined to 30,000 tonnes, a decrease of 22% 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 and urge the deliveries. Soybean meal stocks have fallen by 7% to 850,000 tonnes. Accordingly, oil plants intend to prop up prices. These have together boosted rapeseed meal market. But aquaculture is gradually entering into an off season. There still exists uncertainty in market as the coronavirus pandemic has resurged in US and Europe and the result of U.S. presidential election will come out tomorrow. In consequence, 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 56,500 tonnes, Fuzhou 12,000 tonnes, Shanghai 27,100 tonnes, Tianjin 500 tonnes, Dalian 5,000 tonnes, Fangchenggang 1,010 tonnes and 3,900 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 decline by 20-50 CNY/tonne in some regions today. 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 fluctuate fractionally. 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 ¥6.70)