Today (Nov 24), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures climbed on Monday on brisk exports and as dry weather in portions of Brazil would potentially cut soybean production. But meal futures open low and decline on China’s Dalian Commodity Exchange today on profit taking. Spot soybean meal prices go down 20-50 CNY to 3,130-3,270 CNY/tonne in coastal regions in tepid trade. (Tianjin 3250, Shandong 3160-3250, Jiangsu 3130-3180, Dongguan 3110-3130, and Guangxi 3190-3210.)

While huge soybean arrivals and adequate soybean supplies keep the crush at a high level in China, soybean meal has been in slower consumption as aquaculture is gradually into the slack season; hence, soybean meal stocks keep growing, with a weekly increase of 15% to 1 mln tonnes in coastal regions in the week as of Nov 20, and some mills have to suspend production due to swelling inventories. This make the rise in soybean meal prices a flash in the pan yesterday. However, soybean crush margins for Dec-Feb are at a loss on Dalian due to continuously rising import cost, so mills have strong sentiment supporting prices, which will hold back a sharp decline in soybean meal prices. Overall, short-term soybean meal market is predicted to follow futures to fluctuate frequently, and buyers can stay on the sidelines.

Imported rapeseed meal: U.S. soybean futures further rose on Monday on strong export and worries about soybean production in Brazil threatened by most regional dryness. But meal futures in China fall back after low opens today due to profit taking. And rapeseed meal price in coastal regions settles down 10-40 CNY/tonne at 2,470-2,550 CNY/tonne, seeing a light trading. Soybean supply is sufficient amid huge imports, so weekly soybean crush maintains an extremely high level of 2 mln tonnes, remarkably higher than the same period of previous years. Besides, aquaculture is gradually entering into an off season. Soybean meal stocks continue rallying and increase by 15% to 1 mln tonnes in coastal regions. This has dragged down rapeseed meal price to stop rising. Additionally, rapeseed crush stays at a low level due to limited availability of rapeseed amid tensions between Canada and China, which will likely curb its declines. Consequently, rapeseed meal market is projected to fluctuate at the high level 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. Currently, domestic port traders have no pressure in stocks so that they are not quite willing to sell at low rate. Moreover, domestic holders tend to wait and some have slightly raised prices, for Peruvian exporters have presold over half and have hiked their offer. 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 7,050 tonnes, Tianjin 730 tonnes, Shanghai 31,880 tonnes, Huangpu 65,200 tonnes, Fuzhou 13,530 tonnes, Fangchenggang 1,550 tonnes and 4,420 tonnes at other ports.

FOB quotes from foreign markets today: Dec/Jan shipments are quoted higher by 30 USD to 1,310 USD/tonne for Peruvian Standard with 65% protein content and by 20 USD to 1,530 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 21 (local time), fish catches in the second season of 2020 total 395,014 tonnes, taking up 14.21% of the total quota of 2.78 mln tonnes and with the fishing average at around 40, 000 tonnes per day and 2,384,986 tonnes remaining available.

Cottonseed meal: Cottonseed meal prices are stable today. U.S. soybean futures continued rising on Monday on strong export and fears about soybean production in Brazil threatened by most regional dryness. But meal futures fall back with low opens today on China’s Dalian Commodity Exchange on profit taking, and spot soybean meal is down 20-50 CNY/tonne in coastal regions. Soybean crush maintains a high level amid huge imports. 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, leading the rise in soybean meal market just to be a flash in the pan. And cottonseed meal trading is tepid. All these factors have brought cottonseed meal market bearish sentiment. 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 and mainly fluctuate at a narrow range.

(USD $1=CNY ¥6.58)