Today (Dec 3), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures continued losses on Wednesday on profit taking as rainfall in South America bolstered the crop prospect, and meal futures also further decline on China’s Dalian Commodity Exchange today. Spot soybean meal prices drop 10-30 CNY to 2,990-3,120 CNY/tonne in coastal regions in tepid trade. (Tianjin 3120, Shandong 3050-3100, Jiangsu 3015-3090, Dongguan 2990-3010, and Guangxi 3020-3070.)

China is expected to receive 9.26 mln tonnes of soybean cargoes at ports in December and 8 mln tonnes in January. Meanwhile, aquaculture has been in off-season and farmers have reduced chicken herd due to sustained losses, so the consumption of feed is decreasing, especially poultry feed. As a result, an increasing number of mills are bothered with swelling meal inventories, and soybean meal prices thus continue falling. But net crush margins for soybeans on Dalian have been at loss under high import cost, and an on-going recovery in hog sector is supporting a bright demand outlook for feed, which will help limit the price decline. Overall, as U.S. soybean futures keep retreating, short-term soybean meal prices will probably follow to fluctuate and adjust for a lack of bullish stimulus, and buyers can wait for low and stable prices to make appropriate replenishment.

Rapeseed meal: U.S. soybean futures closed lower on Wednesday on profit taking as rainfall across soybean area in South America boosted production prospect. Meal futures in China also continue falling back today. And rapeseed meal price in coastal regions settles down 20-30 CNY/tonne at 2,360-2,450 CNY/tonne, seeing a light trading. Soybean arrivals are expected to be 9.26 mln tonnes in December and 8 mln tonnes in January. Besides, aquaculture is gradually entering into an off season. And farmers are not willing to replenish layers stocks due to negative breeding margins, leading to a drop in feed consumption. In this case, soybean meal becomes slower delivered, putting pressure on its inventory. Consequently, rapeseed meal price is dampened. 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 Peruvian authorities have also imposed fishing ban from time to time since the start of this fishing season, so that market insiders forecast that the 2.78-mln-tonne of fishing quota may not be fully completed. 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 7,150 tonnes, Tianjin 720 tonnes, Shanghai 31,600 tonnes, Huangpu 65,200 tonnes, Fuzhou 13,500 tonnes, Fangchenggang 1,640 tonnes and 4,400 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 stay stable with a decrease of 50 CNY/tonne in several regions. Crop area in South America embraced more rainfall, boosting soybean production prospect. U.S. soybean futures further dropped on Wednesday on profit taking. And meal futures also continue falling today on China’s Commodity Exchange, and spot soybean meal dips by 10-30 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, so oil plants halt the production, 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)