Today (Nov 9), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures closed lower last Friday on profit taking, and Chinese investors are buying up on oils due to their strong performance, so meal futures also open lower and decline on China’s Dalian Commodity Exchange today. Spot soybean meal prices decline by 30-60 CNY to 3,160-3,280 CNY/tonne today in coastal region in weaker trade. (Tianjin 3280, Shandong 3235-3280, Jiangsu 3190-3200, Dongguan 3160-3220, and Guangxi 3200-3260.)

Chinese buyers are briskly scooping up Brazilian new soybean crops and hedging on Dalian due to good crush margins. And domestic soybean crush remains high due to adequate imported soybean supplies, while soybean meal is in thin trade recently as aquaculture is gradually into the slack season. These are dragging down meal prices to decline. However, the consumption of soybean meal is robust in China owing to a recovery in the breeding sectors, especially in hog feed, so that soybean meal stocks still reduce under high soybean crush. In the week as of Nov 6, China’s soybean meal stocks fell further by 1.5% to 840,000 tonnes in coastal regions. Besides, U.S. medium have reported Joe Biden to win the presidential election, so the focus of commodities will turn back to the market itself. U.S. soybean prices will remain strong on robust exports. Overall, soybean meal prices will have little downside space and will hopefully rise after short-term declines. Buyers are suggested to wait for low and stable prices to make appropriate replenishment.

Imported rapeseed meal: U.S. soybean futures closed down on Friday on profit-taking from long liquidation. And buyers still take an arbitrage by buying oil and selling meal as oil futures keep firm. Meal futures in China sharply decline today. And rapeseed meal price in coastal regions settles down 20-80 CNY/tonne at 2,450-2,550 CNY/tonne, seeing a light trading. Soybean crush remains high amid huge imports and aquaculture is gradually entering into an off season, which may cause rapeseed meal price to stop rising and start dropping. In the near term, rapeseed meal price will still move with fluctuations tracking futures. However, rapeseed crush still stays at low levels due to limited rapeseed imports amid tensions between Ottawa and Beijing, leading to a tight supply in rapeseed meal. There has been no rapeseed meal stocks left in coastal regions. 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 continue decreasing to 840,000 tonnes in coastal regions, a decline of 1.5% compared to the previous week. Oil plants have strong intention to prop up price. These may limit the downside potential of rapeseed meal market.

Imported fishmeal: Imported fishmeal prices steady with a decline today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 9,900-10,300 CNY/tonne, down 100-200 CNY/tonne from last Friday; Peruvian higher-quality SD with 65% protein content is 10,400-10,800 CNY/tonne, down 100-200 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 11,000-11,400 CNY/tonne, down 100-200 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,500-11,800 CNY/tonne, down 100-200 CNY/tonne. Aquaculture is entering into the slack season as the weather gets cool, so that its demand for fishmeal is reducing. This slashes the appetite of feed companies, which is bearish to domestic fishmeal market. Meanwhile, Peru’s Ministry of Production has announced a 2.78-mln-tonne fishing quota for the second season in north central waters. This adds more bearish sentiment to domestic market and some traders thus slightly lower down fishmeal prices today. Overall, domestic fishmeal prices are expected to steady with a slight decline in the near term.

Stocks at ports: Huangpu 58,800 tonnes, Fuzhou 11,650 tonnes, Shanghai 28,800 tonnes, Tianjin 560 tonnes, Dalian 5,070 tonnes, Fangchenggang 1,000 tonnes and 3,620 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 decrease by 20-100 CNY/tonne in some regions today. U.S. soybean futures closed lower on Friday on profit-taking from long liquidation. Meal futures on China’s Dalian Commodity Exchange also sharply decline today due to strengthening oil futures and an arbitrage from oil buying and meal selling, and spot soybean meal drops by 30-60 CNY/tonne in coastal regions. Driven by considerable crush margins of Brazilian new soybean, soybean crush in China maintains a high level amid huge imports. But aquaculture is gradually entering into a slack season, so soybean meal trading is light. This has weighed down meal price. Moreover, 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. Nevertheless, the high cost still offers support to its market. Therefore, cottonseed meal market is projected to fall back in the near term but still fluctuate to stay strong on the whole.

(USD $1=CNY ¥6.61)