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

Soybean meal: USDA reported private sales of 132,000 tonnes of soybeans and 2.108 mln tonnes of corn to China. U.S. corn futures soared last Friday as China heavily bought a total of nearly 6 mln tonnes of U.S. corn that week. In addition, soybean harvest in Brazil could be delayed as the country was forecast to receive more rains. Hence, U.S. soybean futures sharply rose last Friday. Meal futures move higher after low opens on China’s Dalian Commodity Exchange today. Spot soybean meal prices go up 10-30 CNY at 3,610-3,820 CNY/tonne, attracting some low-level purchases. (Tianjin 3820, Shandong 3760-3810, Jiangsu 3710-3760, Dongguan 3610-3640, and Guangxi 3640-3680.)

Soybean import cost remains high at present. Domestic buyers are active in replenishment and delivery, so that some millers have sold out soybean meal for February. And millers will have a downtime schedule during the Lunar New Year holidays. Besides, soybean loading is slow in Brazil, so that monthly soybean arrivals are forecast to be only 6.3-6.4 mln tonnes in February and March. These are supporting meal prices. However, 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, which will combine to curb rises in price. In the short term, soybean meal prices will likely follow futures to fluctuate frequent and be little changed overall.

Rapeseed meal: U.S. corn futures soared on Friday after China booked nearly 6 mln tonnes of U.S. corn, and soybean futures followed a surge. Rapeseed meal futures post further gains after high opens today on China’s Zhengzhou Commodity Exchange. Spot rapeseed meal is offered at 2,680-2,890 CNY/tonne in coastal regions today, an increase of 30-40 CNY/tonne, in tepid trade. A crush mill is forced to halt the operation due to Australian rapeseed without customs clearance. The net crush margins for soybean futures have been negative as the cost of importing soybean stays high, which buoys rapeseed meal. However, soybean crush has risen by 1.95% to 2.14 mln tonnes amid super high operation rate. 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 have increased by 5.9% to 44,500 tonnes, depressing meals prices. Thus, short-term rapeseed meal market is expected to follow soybean meal to stay strong and probably fluctuate frequently.

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 Peruvian 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 2,100 tonnes, Tianjin 200 tonnes, Shanghai 4,240 tonnes, Huangpu 35,000 tonnes, Fuzhou 10,800 tonnes, Fangchenggang 1,000 tonnes and 2,000 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 1,430 USD/tonne, and super with 68% protein content at 1,600 USD/tonne.

Cottonseed meal: Cottonseed meal prices mostly stay stable and partly drop by 50-100 CNY/tonne in China today. 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. Besides, hog capacity recovery has slowed, seeing a subdued trade of cottonseed meal. As a result, cottonseed meal prices move with fluctuations. However, China purchased a great deal of soybeans and corn from the United States. CBOT soybean futures skyrocketed on Friday. Meal futures shift to be higher after low opens on China’s Dalian Commodity Exchange. Spot soybean meal increases by 10-30 CNY/tonne in coastal regions. 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 ¥6.46)