Today (Nov 6), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures continued shooting higher to pass the mark of 1,100 cents on Thursday on worries about weather in South America and strong demand from China. Meal futures continue rising but stay below the previous close on China’s Dalian Commodity Exchange today. Spot soybean meal prices steadily fluctuate by 10-20 CNY to 3,220-3,320 CNY/tonne today in coastal region  in weaker trade. (Tianjin 3320, Shandong 3280-3310, Jiangsu 3230-3270, Dongguan 3220-3250, and Guangxi 3270-3310.)

The demand for soybean meal in China is robust owing to a recovery in the breeding sectors, especially in hog feed, so that millers are selling soybean meal at a brisk pace. 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 thus have strong sentiment in lifting prices, which is support meal market. However, China’s soybean crush remains high due to adequate imported soybean supplies, while aquaculture is gradually into the slack season, so it is somewhat bearish in fundamentals. The outcome of U.S. presidential election remains unresolved now, but the market expects that democratic presidential candidate Joe Biden’s chance to win the election is growing, which means the U.S. will have a larger-scale fiscal incentive and thus pressures on U.S. dollar. Macro-uncertainty could add to fluctuations in the market, but in the context of firm U.S. soybean prices and a global inflation expectation, soybean meal prices will probably be easy to rise and difficult to decline.

Imported rapeseed meal: U.S. soybean futures closed up on Thursday. Rapeseed meal futures follow the rise on China’s Zhengzhou Commodity Exchange today. And rapeseed meal price in coastal regions settles up 10-20 CNY/tonne at 2,500-2,600 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 consecutive decrease in soybean meal stocks. These have together boosted rapeseed meal price. But soybean crush remains high and aquaculture is gradually entering into an off season, which may impact the demand for rapeseed meal. On the other hand, the second wave of COVID-19 in Europe and U.S. has triggered people’s economic concerns. And it still takes time to produce the result of U.S. presidential election. Investors bet on Joe Biden’s victory after winning the key battleground states Michigan and Wisconsin which will followed by more fiscal stimulus, putting pressure on US dollars. Accordingly, market participants need to keep close eyes on increasing volatility under uncertainty. 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 58,500 tonnes, Fuzhou 11,600 tonnes, Shanghai 28,500 tonnes, Tianjin 500 tonnes, Dalian 5,000 tonnes, Fangchenggang 1000 tonnes and 3,670 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. The demand for feed particularly pig feed is improved as livestock breeding is recovering. In this case, soybean meal stocks are consecutively falling despite high operating rate in crushing mills. Hence, oil mills tend to raise price, bulling meals prices. However, cottonseed meal price is still underpinned by relatively high cost, better trading coupled with trader’s demand in replenishment. But the operating rate in crushing mills will keep going up, so the supply of cottonseed meal is likely to increase, which is bearish for cottonseed meal market. Leading by bullish fundamentals, the overall cottonseed meal market will likely fluctuate to move higher.

(USD $1=CNY ¥6.63)