Today (Nov 30), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures rose last Friday as continued dryness in South America was threatening the soybean crop prospect, and meal futures are moderately higher on China’s Dalian Commodity Exchange today. Spot soybean meal prices steadily go up 10-20 CNY to 3,090-3,230 CNY/tonne in coastal regions in tepid trade. (Tianjin 3230, Shandong 3160-3180, Jiangsu 3090-3130, Dongguan 3090-3100, and Guangxi 3140-3160.)

Chinese soybean importers are said to have canceled some cargoes as net crush margins for Dec-Feb shipment on Dalian have been collapsing due to continuously climbing import cost, and some crushers have made a plan for downtime. Moreover, feed demand shows a positive prospect now with a sustaining recovery in the pig sector. These are all supporting meal prices. However, China’s soybean arrivals are predicted to be 141 vessels or 9.26 mln tonnes in December, but soybean meal market has been in lackluster trade and slow delivery as aquaculture is seasonally fading, so that some crushers was in downtime last week under ballooning meal inventories. Dalian meal futures were closed lower toward noon trade. In a hybrid of a bull and a bear, short-term soybean meal market is predicted to fluctuate frequently, and buyers can wait or buy on immediate demand.

Imported rapeseed meal: U.S. soybean futures finished higher on Friday on dryness in South America. Meal futures in China post modest gains today. And rapeseed meal price in coastal regions settles up 10-40 CNY/tonne at 2,460-2,540 CNY/tonne, seeing a light trading. Rapeseed crush stays at a low level due to limited availability of rapeseed amid tensions between Canada and China. Even though rapeseed meal inventory increases to 4,000 tonnes, it is 77% lower than a year earlier. This have bolstered rapeseed meal price. But soybean crush in China maintains the high level due to huge imports. Besides, aquaculture is gradually entering into an off season, which may curb upside of rapeseed meal. It is predicted that rapeseed meal price will fluctuate the high level on the whole.

Imported fishmeal: Imported fishmeal prices are stable today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 9,900-10,100 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,300-10,600 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 10,800-11,000 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,300-11,400 CNY/tonne. Peruvian sellers have hiked their offers as they completed presales of more than a half, and Chinese traders are also propping up prices as there is no pressure in stock. 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 7,370 tonnes, Tianjin 790 tonnes, Shanghai 31,900 tonnes, Huangpu 65,600 tonnes, Fuzhou 13,800 tonnes, Fangchenggang 1,820 tonnes and 4,620 tonnes at other ports.

FOB quotes from foreign markets today: Dec/Jan shipments are quoted higher by 30 USD at 1,360 USD/tonne for Peruvian Standard with 65% protein content and at 1,580 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 26 (local time), fish catches in the second season of 2020 total 555,782 tonnes, taking up 19.99% of the total quota of 2.78 mln tonnes and with the fishing average at around 37,000 tonnes per day and 2,224,218 tonnes remaining available.

Cottonseed meal: Cottonseed meal prices in part drop by 50-100 CNY/tonne today. Soybean crush maintains a high level amid huge imports. Besides, aquaculture has entered into a slack season, so soybean meal trading goes lighter and becomes slow delivered. In this case, soybean meal stocks keep increasing and some oil plants even halt the production due to bloated inventory, curbing meal price. And cottonseed meal trading also becomes tepid. All these factors have brought cottonseed meal market bearish sentiment. But U.S. soybean futures closed higher last Friday. Meal futures modestly rise on China’s Commodity Exchange today, and spot soybean meal steadily goes up by 10-20 CNY/tonne. Furthermore, the high cost still offers support to cottonseed meal market. Therefore, it is expected that short-term cottonseed meal market will not drop too much and mainly move with fluctuations.

(USD $1=CNY ¥6.58)