Today (Dec 2), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures continued falling on Monday, as more rains would bolster the crop production outlook in South America and Chinese buyers were slow in purchasing under dismal crush margins. Meal futures also extend losses on China’s Dalian Commodity Exchange today. Spot soybean meal prices drop 20-50 CNY to 3,020-3,160 CNY/tonne in coastal regions in thin trade. (Tianjin 3160, Shandong 3095-3130, Jiangsu 3055-3100, Dongguan 3020-3050, and Guangxi 3070-3100.)

Soybean arrivals at China’s ports remain substantial at present, but aquaculture has been in off-season and farmers have reduced chicken herd due to sustained losses, so that the consumption of feed is decreasing. As a result, an increasing number of mills are bothered with swelling meal inventories, and soybean meal prices thus continue falling. However, soybean import cost remains at a high level, and some millers in Rizhao, Shandong Province, have to lower down soybean crush to 65% due to heavy pollution. Moreover, an on-going recovery in hog sector is supporting a bright demand outlook for feed. Short-term soybean meal prices may fluctuate to decline and adjust in the absence of bullish news, and buyers can stay on the sidelines.

Imported rapeseed meal: U.S. soybean futures closed lower on Tuesday as expected more rainfall across soybean area in South America boosted production prospect and Chinese buyers were not active in making purchase due to poor crush margins. Meal futures in China also continue falling back today. And rapeseed meal price in coastal regions settles down 20-40 CNY/tonne at 2,380-2,470 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 becomes slower delivered, putting pressure on its inventory. Consequently, rapeseed meal price is dampened due to weakness in soybean meal. Nevertheless, rapeseed crush stays at a low level due to limited availability of rapeseed amid tensions between Canada and China, and global inflation expectations still exist, which helps limit declines. It is predicted that short-term rapeseed meal price will move with fluctuations.

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 7,300 tonnes, Tianjin 750 tonnes, Shanghai 31,800 tonnes, Huangpu 65,400 tonnes, Fuzhou 13,700 tonnes, Fangchenggang 1,750 tonnes and 4,550 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.

Fish catches in north-central Peru: As of Nov 29 (local time), fish catches in the second season of 2020 total 682,285 tonnes, taking up 24.54% of the total quota of 2.78 mln tonnes and with the fishing average at around 38,000 tonnes per day and 2,097,715 tonnes remaining available.

Cottonseed meal: Cottonseed meal prices stay stable today. Crop area in South America embraced more rainfall, boosting soybean production prospect. And Chinese buyers were not active in purchasing soybean due to poor crush margins. As a result, U.S. soybean futures further dropped on Tuesday. And meal futures also continue falling today on China’s Commodity Exchange, and spot soybean meal dips by 20-50 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, leading to a reduction in feed usage. In this case, soybean meal stocks keep swelling, which causes meal price to consecutively edge down. 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.

(USD $1=CNY ¥6.56)