Today (Jan 29), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures closed sharply lower on Thursday on disappointing export data and profit-taking, and meal futures also decline after low opens on China’s Dalian Commodity Exchange today. Spot soybean meal prices go down 20-40 CNY at 3600-3810 CNY/tonne in weaker trade. (Tianjin 3810, Shandong 3760-3810, Jiangsu 3720-3790, Dongguan 3600-3640, and Guangxi 3620-3670.)

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. These are bearish to meal prices. But soybean import cost remains high, so that net crush margins are still at loss on Dalian. And China’s soybean meal stocks have reduced drastically, and some millers and distributors have small volume marketable for Jan-Feb so that they have strong sentiment to support prices. In a hybrid of the bull and the bear, short-term soybean meal market is predicted to follow futures to fluctuate frequently.

Rapeseed meal: CBOT soybean futures plummeted overnight on disappointing export data and profit-taking. Meal futures continue the declines after low opens today on China’s exchanges. Spot rapeseed meal is offered at 2,680-2,850 CNY/tonne in coastal regions today, a partial decrease of 10 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 is in subdued trade, leading to an increase in its inventories, and thereby cracking down its prices. Additionally, the cost of importing soybean stays high, and rapeseed crush maintains the low level amid limited imports, which may continue supporting rapeseed meal market. 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 2,800 tonnes, Tianjin 240 tonnes, Shanghai 5,000 tonnes, Huangpu 36,800 tonnes, Fuzhou 11,400 tonnes, Fangchenggang 1,000 tonnes and 2,300 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 higher by 60 USD at 1,430 USD/tonne, and super with 68% protein content steadily at 1,600 USD/tonne.

Cottonseed meal: Cottonseed meal prices mostly stay stable and partly fluctuate by 100 CNY/tonne in China today. U.S. soybean futures slumped on long liquidation and disappointing export data. Meal futures fall back after low opens on China’s Dalian Commodity Exchange. Spot soybean meal declines by 20-40 CNY/tonne in coastal regions. 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. These factors are bearish for meals prices. 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 ¥6.47)