Today (Dec 1), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures sharply fell on Monday on profit taking, as beneficial rain for soybean crops in parts of Brazil and Argentina eased drought concerns. Meal futures also open low and decline on China’s Dalian Commodity Exchange today. Spot soybean meal prices drop 30-40 CNY to 3,060-3,190 CNY/tonne in coastal regions in thin trade. (Tianjin 3190, Shandong 3135-3150, Jiangsu 3075-3120, Dongguan 3060-3080, and Guangxi 3120-3140.)

China is expected to continue seeing huge soybean arrivals at ports, probably with 9.26 mln tonnes in December and 8 mln tonnes in January. On the demand side, aquaculture is fading seasonally, and chicken flocks are also decreasing due to continuous losses in margins, together reducing the demand for soybean meal and leaving it for slow shipment. Hence, domestic millers are hastening shipments to ease swelling meal inventories, which is curbing meal prices. However, strong U.S. soybean futures are lifting import cost, throwing net crush margins for Dec-Feb shipment on Dalian into a loss. Moreover, an on-going recovery in hog sector is supporting a bright demand outlook for feed. In a hybrid of the bull and the bear, short-term soybean meal market is likely to follow futures to fluctuate frequently, and buyers can wait on the sidelines.

Imported rapeseed meal: U.S. soybean futures closed lower on Monday on improved weather across crop area in South America and profit taking. Meal futures in China also fall back with low opens today. And rapeseed meal price in coastal regions settles down 20-40 CNY/tonne at 2,420-2,490 CNY/tonne, seeing a light trading. Soybean crush in China maintains the high level due to huge imports. Likewise, aquaculture is gradually entering into an off season. In this case, soybean meal stocks set at 920,000 tonnes, 123% higher than the corresponding period last year. This has depressed rapeseed meal price. Nevertheless, rapeseed crush stays at a low level due to limited availability of rapeseed amid tensions between Canada and China, which may limit price declines of rapeseed meal. It is predicted that short-term rapeseed meal price will fluctuate at a narrow range.

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 manufacturers bear no selling pressure as they have presold more than half of their cargoes, and local authorities have also imposed fishing ban from time to time since the start of this fishing season. In addition, Chinese port traders also feel free in terms of stocks and have strong sentiment in propping up prices. However, domestic demand for fishmeal is decreasing in aquaculture as the weather gets cool, so that feed companies have little enthusiasm 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 7,350 tonnes, Tianjin 770 tonnes, Shanghai 31,850 tonnes, Huangpu 65,500 tonnes, Fuzhou 13,770 tonnes, Fangchenggang 1,800 tonnes and 4,600 tonnes at other ports.

FOB quotes from foreign markets today: Dec/Jan shipments are quoted steadily 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.

Cottonseed meal: Cottonseed meal prices drop by 20-50 CNY/tonne in several regions today. The rainfall in Argentina and parts of South Brazil favors soybean growing, easing concerns over dryness and triggering a profit taking in market. U.S. soybean futures plunged on Monday on the news. And meal futures fall back after low opens today on China’s Commodity Exchange, and spot soybean meal dips by 30-40 CNY/tonne in coastal regions. Soybean crush maintains a high level amid huge imports. Besides, aquaculture has entered into a slack season and farmers suffer huge losses, causing feed usage to drop. In this case, soybean meal deliveries become slow, putting pressure on its inventory. This has curbed meal price. And cottonseed meal trading also becomes 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 continue fluctuating but not drop too much.

(USD $1=CNY ¥6.60)