Today (Nov 4), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures rose on Tuesday as U.S. soybean harvests were lower than the forecast and Brazil was buying U.S. soybeans. Meal futures open high and expand gains on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 10-20 CNY to 3,160-3,280 CNY/tonne today in coastal region, attracting some purchases on low-level basis. (Tianjin 3280, Shandong 3240-3280, Jiangsu 3190-3210, Dongguan 3160-3200, and Guangxi 3230-3260.)

Demand from poultry and livestock sectors, especially hog breeding, is improving, so that most millers are selling soybean meal at a brisk pace. In the week as of Oct 30, domestic soybean meal stocks fell 7% to 850,000 tonnes in coastal regions, leading to a line of trucks waiting to get loaded at some mills in north China. The market expects that President Trump will win the election as he takes a lead in most swing states. If so, commodity markets will get bolstered after result comes out later today. Short-term soybean meal market will fluctuate to climb, but its rises will be limited by strong oils prices. Buyers are suggested to wait for low and stable prices to keep safety stocks, but not to chase after excessively high prices.

Imported rapeseed meal: U.S. soybean futures finished markedly higher on Tuesday. Rapeseed meal futures extend opening gains on China’s Zhengzhou Commodity Exchange today. And rapeseed meal price in coastal regions settles up 10-20 CNY/tonne at 2,420-2,500 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. Hence, oil mills limit the orders and truck loading is delayed. Except that, oil mills are in fast progress in soybean meal sales and soybean meal stocks have fallen by 7% to 850,000 tonnes, so the overall market still keeps strengthening. These have together boosted rapeseed meal market. But soybean crush remains high and aquaculture is gradually entering into an off season, limiting price rises of rapeseed meal. In addition, Trump leads in majority of key swing states for the moment, and market expects that he stands a good chance of winning re-election, which will boost commodities and stocks markets. It is predicted that rapeseed meal price will likely fluctuate to stay strong.

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. Local manufacturers in Peru have not very much fishmeal in stock and tend to prop up prices. Meantime, port stocks in China are also at a low level, so that major traders are also supporting prices and waiting for fishing quotas in the new season. These continue offering support to domestic fishmeal market. Merely, domestic aquaculture gets quiet as the weather cools down, which lessens its consumption on fishmeal and slacken the appetite of feed enterprises. Overall, domestic fishmeal prices are expected to steady with a slight adjustment in the near term.

Stocks at ports: Huangpu 57,500 tonnes, Fuzhou 11,700 tonnes, Shanghai 27,500 tonnes, Tianjin 520 tonnes, Dalian 5,020 tonnes, Fangchenggang 1,030 tonnes and 3,800 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. And soybean meal price is still curbed by an arbitrage from buying oil and selling meal. 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. However, cottonseed meal price is still underpinned by relatively high cost. The votes so far suggest that Trump has a good chance of winning the U.S. presidential election, bulling commodities and stocks markets. Therefore, it is predicted that cottonseed meal market will fluctuate in a short term but toward an upward trend on the whole.

(USD $1=CNY ¥6.68)