Today (Nov 13), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures pulled back on Thursday on profit-taking, and meal futures open low and expand losses on China’s Dalian Commodity Exchange today. Spot soybean meal prices decline by 20-50 CNY to 3,130-3,240 CNY/tonne in coastal region in tepid trade. (Tianjin 3240, Shandong 3190-3250, Jiangsu 3160-3180, Dongguan 3130-3160, and Guangxi 3200-3240.)

China and U.S. are likely to see a detente in relations as Joe Biden won the presidential election. Moreover, China’s soybean crush has been at a high level due to adequate feedstock supplies, while soybean meal market has been in thin trade recently due to slack aquatic feed demand, so that some mills have been choked up with meal stockpiles. Meanwhile, domestic investors are active in buying oils and selling meals to take profits. These are bearish to domestic meal prices. However, a strong trend in U.S. soybean prices has lifted the import cost, so that crush margins for U.S. soybean of Dec-Feb shipments are at a loss. Add to that, as hog feed production has notably increased due to a quick recovery in hog population, soybean meal stocks has been falling in coastal regions. Mills are propping up prices on a bright demand prospect, which may limit the decline in prices. Overall, short-term soybean meal market will probably fluctuate to adjust, but its overall trend will stay strong in fluctuation. Buyers can wait for low and stable prices to make appropriate replenishment.

Imported rapeseed meal: US soybean futures finished lower on Thursday. Meal futures in China fall back after low opens today. And rapeseed meal price in coastal regions settles down 20-30 CNY/tonne at 2,420-2,560 CNY/tonne, seeing a light trading. Soybean crush remains high amid huge imports and aquaculture is gradually entering into an off season, depressing rapeseed meal price. But rapeseed meal is in tight supply and its stockpile down to zero, so oil mills limit the orders and truck loading is delayed. And oil plants tend to raise price as soybean meal stocks keep falling, which may limit declines. In a hybrid of the bull and the bear, it is predicted that short-term rapeseed meal price may fluctuate at a narrow range. But the downward space of rapeseed meal is limited as U.S. soybean keeps strengthening overall. Therefore, rapeseed meal market is projected to fluctuate to stay strong in later period.

Imported fishmeal: Imported fishmeal prices steady with a decline today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 9,800-10,100 CNY/tonne, down 100 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,200-10,500 CNY/tonne, down 200 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 10,800-11,200 CNY/tonne, down 200 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,300-11,600 CNY/tonne, down 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, and some traders tend to sell at current prices. However, recent political chaos in Peru could cast doubts on fishing activities in its north central waters, so some Chinese traders are still awaiting. Overall, domestic fishmeal prices are expected to steady with a slight decline in the near term.

Stocks at ports: Huangpu 60,260 tonnes, Fuzhou 11,950 tonnes, Shanghai 30,300 tonnes, Tianjin 550 tonnes, Dalian 5,190 tonnes, Fangchenggang 1,250 tonnes and 3,950 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 further decrease by 50-100 CNY/tonne in some regions today. U.S. soybean futures closed lower on Thursday on profit taking. Meal futures open low and escalate the declines today on China’s Dalian Commodity Exchange, and spot soybean meal decreases by 20-50 CNY/tonne in coastal regions. Joe Biden’s election as U.S. president is favorable for a detente in Sino-US relations. Besides, the operating rate in soybean crushing mills remains high amid ample supply. But soybean meal trading is light as aquaculture has entered an off season. Meanwhile, investors take an arbitrage from oil buying and meal selling. These factors are bearish for domestic meal price. Moreover, the operating rate in cottonseed crushing mills will keep recovering and cottonseed meal trading in market is tepid, 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 cottonseed meal market. Therefore, cottonseed meal market is projected to move with fluctuations in the near term but still stay strong on the whole.

(USD $1=CNY ¥6.63)