Today (Nov 5), the market for meals in China is shown as follows:

Soybean meal: La Nina continued threatening crops in South America as recent rains in Brazil could not completely ease pressure in soybean crop development; and U.S. soybean stocks was tightening, and the USDA was expected to lower down U.S. soybean yield while raise exports in November supply and demand report; hence, U.S. soybean futures climbed on Wednesday. Meal futures open high and advance on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 40-70 CNY to 3,220-3,330 CNY/tonne today in coastal region, attracting some purchases on low-level basis. (Tianjin 3330, Shandong 3285-3330, Jiangsu 3240-3260, Dongguan 3220-3260, and Guangxi 3280-3320.)

Chinese millers are selling soybean meal at a brisk pace, for the demand from poultry and livestock sectors, especially hog breeding, is improving. Domestic soybean meal stocks thus keep decreasing 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 in propping up prices, which is bullish to meal prices. U.S. democratic presidential candidate Joe Biden currently has 264 electoral votes, which is one step left to the magic number of 270 votes. People call this an astonishing reversal, as the situation just did not bode well for him yesterday afternoon. The outcome of the presidential election will remain unresolved for days, so macro-uncertainty could add to fluctuations in the market. In the near term, soybean meal prices are expected to rise in fluctuation.

Imported rapeseed meal: U.S. soybean futures finished markedly higher on Wednesday. Rapeseed meal futures extend opening gains on China’s Zhengzhou Commodity Exchange today. And rapeseed meal price in coastal regions settles up 60-100 CNY/tonne at 2,490-2,610 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 urge the deliveries, leading to a continuous decrease in soybean meal stocks. These have together boosted rapeseed meal market. But soybean crush remains high and aquaculture is gradually entering into an off season, which may impact the demand for rapeseed meal. It is predicted that rapeseed meal price will likely move toward an uptrend with fluctuations as US soybean steadily goes up.

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. The market sentiment has been mixed recently. Overall, domestic fishmeal prices are expected to steady with a slight adjustment in the near term.

Stocks at ports: Huangpu 57,800 tonnes, Fuzhou 11,800 tonnes, Shanghai 27,600 tonnes, Tianjin 540 tonnes, Dalian 5,050 tonnes, Fangchenggang 1,040 tonnes and 3,700 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. Besides, U.S. soybean keeps strengthening, lifting the cost of importing soybean. 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 ¥6.69)