Today (Jan 28), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures continued rising but closed well below the intraday high on Wednesday, and meal futures swing after low opens on China’s Dalian Commodity Exchange today. Spot soybean meal prices go down 20-30 CNY at 3,620-3,840 CNY/tonne in weaker trade. (Tianjin 3840, Shandong 3820-3850, Jiangsu 3740-3830, Dongguan 3620-3650, and Guangxi 3640-3700.)

China’s soybean crush remains at a very high level, whilst a cluster of poultry and livestock will be sold ahead of the Chinese Lunar New Year, aquaculture has come to a standstill in winter and downstream buyers have almost completed replenishment for the festival; hence, soybean meal prices are weighed down to fluctuate today. However, soybean import cost remains high. China’s soybean meal stocks have notably fallen to 480,000 tonnes, and some millers have limited soybean meal goods for Jan-Feb sales so that they have strong sentiment to support prices. In the short term, soybean meal market may follow futures to strengthen in frequent fluctuations.

Rapeseed meal: CBOT soybean futures further rose but closed far below the intraday high on Wednesday, due to Brazil’s slow soybean harvest and the upcoming strike by its truck drivers on Feb 1. Meal futures continue the declines after low opens today on China’s exchanges. Spot rapeseed meal is offered at 2,650-2,750 CNY/tonne in coastal regions today, a fluctuation of 10-20 CNY/tonne, in tepid trade. Soybean crush will likely reach 2.10 mln tonnes and 2.05 mln tonnes respectively in the coming two weeks due to sufficient supply of soybeans. Besides, livestock and poultry are slaughtered intensively this moment with the upcoming Spring Festival, and aquaculture has basically ceased, slackening demand for meals. Rapeseed meal inventories keep increasing, and thereby cracking down meal prices. Plus, investors need liquidity back with the forthcoming Spring Festival. Thus, short-term rapeseed meal market is expected to move with fluctuations.

Imported fishmeal: Imported fishmeal prices keep firm today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 10,100-10,600 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,500-11,100 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 11,100-11,500 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,600-12,000 CNY/tonne. Fishmeal stocks will continue reducing at domestic ports before the Lunar New Year, and offers from foreign markets also keep firm, so traders have sentiment to support prices. But the demand for fishmeal is subdued as aquaculture turns slack in winter, which is capping the upward space in domestic fishmeal market. In the short run, domestic fishmeal market is expected to steady with slight adjustments.

Stocks at ports: Dalian 2,600 tonnes, Tianjin 260 tonnes, Shanghai 5,130 tonnes, Huangpu 37,500 tonnes, Fuzhou 11,600 tonnes, Fangchenggang 1,020 tonnes and 2,500 tonnes at other ports.

FOB quotes from foreign markets today: Jan/Feb shipments are quoted steadily at 1,430 USD/tonne for Peruvian Standard with 65% protein content and at 1,650 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 mostly stay stable and partly decrease by 100 CNY/tonne in China today. CBOT soybean futures further rose but closed far below the intraday high on Wednesday. Meal futures seesaw after low opens on China’s Dalian Commodity Exchange. Spot soybean meal declines by 20-30 CNY/tonne. For the moment, the operation rate in crushing mills remains super high, and livestock and poultry are slaughtered intensively with the forthcoming Spring Festival. Meanwhile, aquaculture has basically ceased, and downstream buyers are about to end the stockpiling before the holiday. Hence, soybean meal stagnates and shifts to fluctuate today. Besides, hog capacity recovery has slowed, seeing a subdued trade of cottonseed meal. As a result, cottonseed meal prices edge down. But the cost of importing soybean stays high. And cottonseed cost remains high, which supports cottonseed meal price as well. It is projected that short-term cottonseed meal market will still fluctuate at the high level.

(USD $1=CNY ¥6.48)