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

Soybean meal: U.S. soybean futures fell on Monday on dismal export data, and meal futures decline after low opens on China’s on China’s Dalian Commodity Exchange today. Spot soybean meal prices go down 20-50 CNY at 3,570-3,780 CNY/tonne in tepid trade. (Tianjin 3780, Shandong 3750-3780, Jiangsu 3690-3730, Dongguan 3570-3610, and Guangxi 3640-3680.)

The CBOT speculation on weather temporarily comes to an end as South American producing regions received rainfalls, and Brazilian farmers are now making progress in soybean harvest so that the global market share of U.S. soybeans will be squeezed; hence, CBOT soybean futures snap an uptrend to swing. And in China, 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, so soybean meal market has been in tepid trade for days. Meanwhile, high soybean crush will also contribute to build up soybean meal stocks. These are bearish to meal prices. But soybean import cost remains high at present, and some millers have sold out soybean meal for February. 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. Soybean meal prices will likely follow futures to fluctuate frequently in the short term and be little changed overall.

Rapeseed meal: U.S. soybean futures closed lower on Monday on profit taking and dismal export data. Meal futures also edge down after low opens on China’s exchanges. Spot rapeseed meal is offered at 2,670-2,820 CNY/tonne in coastal regions today, a decline of 40-50 CNY/tonne, in tepid trade. The operation rates in crushing mills remain pretty high. Besides, livestock and poultry are slaughtered intensively this moment with the upcoming Spring Festival, and aquaculture has basically ceased. Moreover, downstream buyers have almost completed the stockpiling before the holiday. Consequently, the demand for meals gets poor. Rapeseed meal inventories keep increasing, depressing rapeseed meal prices. Plus, investors are repatriating their capital as the Spring Festival is coming soon. It is predicted that short-term rapeseed meal market will follow futures to fluctuate.

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 2,110 tonnes, Tianjin 250 tonnes, Shanghai 4,380 tonnes, Huangpu 34,800 tonnes, Fuzhou 10,830 tonnes, Fangchenggang 1,010 tonnes and 2,010 tonnes at other ports.

FOB quotes from foreign markets today: Feb/Mar 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. U.S. soybean futures ended lower on Monday on dismal export inspection. Dalian meal futures also fall back with low opens today. Spot soybean meal declines by 20-50 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. In recent days, soybean meal trading is tepid, which is bearish for meals prices. Besides, the slow recovering of hog capacity leads to a subdued trade of cottonseed meal, thereby cracking down its price. But 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)