Today (Nov 23), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures closed higher last Friday on concerns over soybean production outlook in South America under dry weather conditions and on tightening U.S. soybean supplies on brisk demand in exports and domestic crush. Meal futures open high and rise on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 30-50 CNY to 3,130-3,270 CNY/tonne in coastal regions in tepid trade. (Tianjin 3270, Shandong 3190-3280, Jiangsu 3170-3200, Dongguan 3130-3230, and Guangxi 3200-3240.)

Soybean crush margins for Dec-Feb are at a loss on Dalian due to continuously rising import cost. In addition, oils futures slump as investors take profits, which is also lending support to meal futures. Millers have strong sentiment to follow futures to raise prices, which is supporting meal market. However, domestic crushers are maintaining high operation rates under huge soybean supplies, whilst soybean meal is in slow consumption as aquaculture is fading; hence, domestic soybean meal stockpiles rose 15% weekly to 1 mln tonnes in coastal regions. More and more mills have to suspend production to liquidate stocks, which may curb rises in meal prices. Overall, short-term soybean meal market may follow futures to fluctuate to rise, but will also fluctuate frequently for a lack of fundamental supports. Buyers are suggested to keep appropriate stockpiles and not to chase after excessively higher prices.

Imported rapeseed meal: U.S. soybean futures rose on Friday on strong export and dryness in South America. Meal futures in China also go up with high opens today. And rapeseed meal price in coastal regions settles up 20-60 CNY/tonne at 2,510-2,560 CNY/tonne, seeing a light trading. For rapeseed crush stays at a low level amid tensions between Canada and China, rapeseed meal is in tight supply, which may boost rapeseed meal price. Its inventory falls by 94% compared to the previous year despite an increase to 1,500 tonnes last week. However, China is still purchasing US soybean so as to meet Phase One trade deal, so soybean crush maintains the high level amid huge imports. In this case, soybean meal stocks continue rallying and increase by 15% to 1 mln tonnes in coastal regions. Additionally, aquaculture is gradually entering into an off season, limiting rapeseed meal upside. Consequently, rapeseed meal market is projected to fluctuate to stay strong on the whole.

Imported fishmeal: Imported fishmeal prices steady today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 9,800-10,100 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,200-10,500 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 10,700-11,000 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,200-11,400 CNY/tonne.

Domestic port traders are unwilling to sell at low rates as there is no pressure in stocks, and they tend to wait, for Peruvian exporters have presold over fifty percent and may raise their offers. Merely, domestic demand for fishmeal is decreasing in aquaculture as the weather gets cool, so that feed companies are not busy making purchases, which is constraining the market. Overall, domestic fishmeal prices are expected to steady with slight adjustments in the near term.

Stocks at ports: Dalian 6,910 tonnes, Tianjin 590 tonnes, Shanghai 31,980 tonnes, Huangpu 64,900 tonnes, Fuzhou 13,520 tonnes, Fangchenggang 1,500 tonnes and 4,300 tonnes at other ports.

FOB quotes from foreign markets today: Dec/Jan shipments are quoted steadily at 1,280 USD/tonne for Peruvian Standard with 65% protein content and at 1,510 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.

Fish catches in north-central Peru: As of Nov 18 (local time), fish catches in the second season of 2020 total 292,360 tonnes, taking up 10.52% of the total quota of 2.78 mln tonnes and with the fishing average at around 42, 000 tonnes per day and 2,487,640 tonnes remaining available.

Cottonseed meal: Cottonseed meal prices further decrease by 20-100 CNY/tonne in some regions today. To ensure oil supply, the operation rate in crushing mills maintains a high level. Besides, aquaculture has entered into a slack season. Soybean meal consumption markedly slows down in recent days. As of now, soybean meal stocks in coastal regions increase by 15% to 1 mln tonnes. Some oil plants even halt the production due to bloated inventory and urge the deliveries, which limits upward space of meal price. And cottonseed meal trading is tepid. All these factors have brought cottonseed meal market bearish sentiment. But U.S. soybean futures closed up on Friday. Meal futures extend the rally after high opens on China’s Dalian Commodity Exchange, and spot soybean meal is up 10-50 CNY/tonne in coastal regions. Furthermore, the high cost still offers support to cottonseed meal market. Therefore, it is expected that short-term cottonseed meal market will fall not too much. Buyers can keep eyes on the trend of soybean meal. If soybean meal rebounds consecutively, cottonseed meal market will also be buoyed.

(USD $1=CNY ¥6.57)